Flexpac Limited (00190711): administration
- Status
- Administration ended
- Administration began
- 2014-04-17
- Formerly
- Flexspring Engineering Limited
- Incorporated
- 1923-06-16
- Location
- London
- Industry
- 22290 Manufacture of other plastic products
Why it went into administration
- Property / lease costs
From the administrators' statement
The Company’s clients in the period prior to Administration included Brand Packaging, The King of Shaves, Starbucks and Proctor & Gamble Until late 2012, Proctor & Gamble (“P&G”) accounted for approximately 70% of the Company's business P&G had been a long established chent but, due to a change in tts policies, in December 2012 the business was placed elsewhere which resulted in a significant reduction tn the Company’s turnover
The Company reduced its permanent staff by 50% in an attempt to reduce overheads and ensure the survival of the Company The management endeavoured to obtain new, long term contracts and explored other avenues of potential revenue streams tn an attempt to keep the business going
The Company was also burdened by expensive leased premises which were too large for the business’s needs The rent was £195,000 per annum, and the Company was unable to meet its rent obligations going forward with a diminished order book In the circumstances, the Directors asked the landlord whether it would accept a voluntary surrender The landlord instructed a surveyor to assess the position, but gave no further indication of Its intentions as regards the lease
Administrators' statement of proposals (2014-06-13) · Companies House register