Lockwoods Liverpool Limited (00453789): administration
- Status
- Administration ended
- Administration began
- 2018-11-15
- Incorporated
- 1948-05-07
- Location
- Liverpool
- Industry
- 10130 Production of meat and poultry meat products
Why it went into administration
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Sustained trading losses
- Competition / price pressure
From the administrators' statement
With declining sales and increased competition in the area, the Company has suffered reducing profit margins in recent years, with the result that a large part of the production of meat pies and associated products have been stopped. The Director wanted to concentrate on the more profitable core business of sausage making. In order to become more automated and reduce costs, the Company has recently purchased a new sausage making machine, which in the short term has added to the increasing cash flow problems.
Some redundancies were made in October 2018, however the majority of the staff had over 25 years’ service and the Company was unable make sufficient redundancies, as it could not meet their substantial termination liabilities.
With increasing pressure from Creditors, the Director endeavoured to obtain further funding to meet ongoing commitments, however a deal could not be achieved. With insufficient monies being available to place orders for stock to cover the profitable Christmas market and pay the ongoing wages of employees, the Company was left with no alternative but to cease to trade. On 14 November ail remaining employees were made redundant and steps were taken to place the Company into Administration.
Administrators' statement of proposals (2019-01-08) · Companies House register