Mcarthur Cyclone Limited (00266536): administration
- Status
- Administration ended
- Administration began
- 2014-05-08
- Administrators' firm
- PwC
- Formerly
- Mcarthur Fabrications Limited
- Incorporated
- 1932-06-27
- Location
- Leeds
- Industry
- 46760 Wholesale of other intermediate products
Why it went into administration
- Creditor pressure / legal action
- Loss of a key customer, supplier or contract
- Funding withdrawn / unable to refinance
- Sustained trading losses
- Parent or group failure
- Competition / price pressure
- Cash flow / liquidity pressure
From the administrators' statement
The Companies were part of a group that manufactured and distributed a wide range of agricultural, building and fencing products. The operations were situated across the UK and Ireland with depots in twelve locations (three of which were not in use at the date of administration).
The business had been loss making for a number of years, partly due to the difficulties in the markets it operated in and partly due to operational inefficiencies. Performance improvements were being made through the cessation of loss making activities and operational changes, however cash pressure continued to build through the traditionally quieter winter period in late 2013
As a result, corporate finance advisors (Shaw & Co LLP) were engaged in January 2014 to seek external investment or finance. This process resulted in the refinance of the term debt from Barclays to Tanistry (an SPV controlled by RCapital) in March 2014. Barclays continued to fund the debtor book. Further restructuring was undertaken by the Companies following this refinancing.
Administrators' statement of proposals (2014-07-01) · Companies House register