Famous private school closes & a major auto manufacturer is in administration
We hope the long Easter weekend didn’t cause too much disruption to your work or your waistline and you were able to enjoy a well-earned break – not just away from business but also from the news!
Fortunately we kept track of all the important and interesting business and insolvency news stories from the past seven days.
So if you want to know if business energy costs will rise this summer; why business insolvencies have risen for the third month in a row; why a wave of late payments is threatening to drown SMEs; practical advice on the first thing directors must do if they receive a CCJ and why a CIFAS marker could destroy your business if ignored – you can read all these stories and more right here at our advice centre.
Autostructures
The parent company of a 68-year-old major UK manufacturing firm has gone into administration.
Autostructures UK is based in Telford and has supplied steel and aluminium products for the automotive and construction industries.
They have been a supplier for JCB for 30 years, providing 22,000 chassis frames in that time and helping the company make the world’s fastest tractor. They designed and manufactured the specialised wheel components for the Fastrac model which can reach a peak speed of 153 miles per hour.
The company began life in 1958 as Alexander Socket Screws Limited.
Their parent company is Moveero Ltd which also manufactures construction vehicles as well as wheels, rims and hubs for farming.
Directors said that the business in the UK had faced major operational challenges due to a weakened off-highway market, downward pricing pressure and competition from rivals.
In a formal statement they said: “As a result of these ongoing challenges, the directors of the businesses have taken steps to protect the interests of creditors by appointing administrators. This will allow the UK businesses to continue trading while buyers for the businesses and their assets are pursued, with all staff retained during this period.”
David Geraghty, CEO of Moveero, said: “Against a difficult economic backdrop, we have worked tirelessly over the past 12 months to improve the financial performance of the UK business.
“We’re incredibly grateful for the support of our brilliant team and also the support of our customers who have provided us with funding in recent days which has given us the additional time we need to continue to explore the options available.”
Fusion Lifestyle
A nationwide charity that runs several leisure centres and swimming pools in England has gone into administration after a “prolonged period of financial difficulty”.
Fusion Lifestyle is based in Dartford in Kent and said it had “collaborated closely with local authorities to explore viable options” and many councils had agreed to keep facilities open during a transition period. Memberships remained active and scheduled activities would continue.
A statement from the charity said: “Rising operational costs, reduced government funding and post-pandemic recovery challenges” were the main cause of their financial difficulties and while they had “made significant attempts to introduce new funding”, it had been unsuccessful.
The charity runs five facilities in Somerset, six in Devon, three in Leicestershire, three in Kent, Wycombe Rye Lido in Buckinghamshire, Brockwell Lido in London and Newcastle City Baths.
Scott Leathers
A County Durham firm that sold motorbike leathers for over four decades has gone into voluntary liquidation.
Scott Leathers in Barnard Castle made and sold bespoke motorbike leathers and closed with the loss of six permanent positions.
Managing Director Jim Aird, a former ex-British motocross champion, said: “It’s very sad but what can we do?”
Mr Aird said the company could not keep up with rising costs imposed with the rising levels of the minimum wage making things “impossible”.
“There’s no point trying to compete with the Far East. We just can’t do it, can’t keep pace with it. Everything is going up.”
Liquidators will now look to realise the company’s assets and distribute any available funds to creditors.
Wallers Estate Agents
An Oxfordshire estate agent that had been operating for 12 years has gone into liquidation.
Wallers Estate Agents was a family business founded by Rowan Waller in 2014 and was based in Oxford before opening a second branch in Swindon, building a strong local following.
The business continually received good online reviews for their professional and courteous attitude and excellent service.
The company had struggled to pay back a bounce back loan and also owed HMRC.
St Lawrence College
A historic private school in Kent has closed with immediate effect with 166 positions being made redundant.
St Lawrence College is an independent day and boarding school in Ramsgate and was founded in 1879. The school taught 500 pupils aged three to 18 but only Year 11 and 13 students will be retained so they can complete their GCSE, A-Level and BTEC studies in June with 44 staff retained to administer them.
Managers said they were impacted by declining pupil numbers, rising school fees and operational costs along with broader economic uncertainty.
Governors’ chairman Graham Carter said: “This is an incredibly sad day for everyone connected with St Lawrence College. This school has been at the heart of the Ramsgate community and generations of pupils have benefited from the dedication of our staff and the strength of our community.
“We explored every possible option to secure the school’s future and I want to thank everyone who worked so hard to find a way forward. While this isn’t the outcome we wanted, our focus now is on supporting our examination year pupils to complete their studies, helping families find new school places and ensuring our colleagues receive the support they deserve.”
No matter what line of business you operate in, these could be a nervous few weeks and months ahead.
Be proactive and take the time now to get in touch with us to arrange a free initial consultation.
Our advisors will be able to talk through your current situation and your plans for the business and let you know what options you have available that you might not have considered.
The sooner you contact us, the sooner we can begin to work together and make your plans a reality – even sooner.