C.L. Conyers & SON (Smethwick) Limited (00894095): administration
- Status
- Administration ended
- Administration began
- 2011-09-27
- Administrators
- Mark Jeremy Orton, Richard James Philpott
- Administrators' firm
- KPMG
- Incorporated
- 1966-12-15
- Location
- Birmingham
- Industry
- 2051
Why it went into administration
- Creditor pressure / legal action
- Cash flow / liquidity pressure
From the administrators' statement
Developments was incorporated on 5 March 1992 with its wholly owned subsidiary CLC having been incorporated on 15 December 1966 The trading company, CLC, was a long established manufacturer of cardboard boxes and cases CLC’s business supplied a number of blue chip companies as well as small independent firms Developments 1s predominantly a holding company which owns a freehold property in Lye, Stourbridge from which the Companies operated In addition, Developments also owns three investment properties ali located within the West Midlands
In recent years the Companies had been profitable, however, we have been informed that the acquisition of business assets including goodwill and stock from Board Products (Stoke) Limited in July 2010 resulted in integration problems and a significantly higher than anticipated cash requirement The cash stress was compounded by the switching of key suppliers during 2011 to benefit from lower prices but on stricter credit terms Consequently, in the months leading up to the administration the Companies experienced sigmficant cashflow difficulties As a consequence of this increasing creditor pressure, a winding up petition was lodged against CLC This winding up petition led to the Companies’ bank facilities being frozen It was apparent that the Companies were imsolvent and unable to meet their debts as they fell due
On 27 September 2011 Richard Philpott and Mark Orton were appointed Jotnt Administrators over the Companies by way of out of hours qualifying floating charge holder appointments The Administrators were appointed by Natwest under debentures dated 27 February 2004 and 27 February 1985 for Developments and CLC respectively An overnight appointment was considered necessary due to a perceived lack of control over the Companies properties and assets It was considered that an overnight appointment was in the best interest of the creditors as there was a real and significant risk that the value of the Companies’ assets could have been further eroded
Administrators' statement of proposals (2011-11-21) · Companies House register