Chemence Graphics UK Limited (01347359): administration
- Status
- Administration ended
- Administration began
- 2019-10-25
- Administrators' firm
- Begbies Traynor
- Formerly
- V. & W. Graphics Limited
- Incorporated
- 1978-01-10
- Location
- Northampton
- Industry
- 32990 Other manufacturing n.e.c.
Why it went into administration
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Loss of a key customer, supplier or contract
- Sustained trading losses
- Competition / price pressure
From the administrators' statement
The Company was established in 1978 as V&W Graphics Limited (‘V&W”) by Mike Vickers and John White employing approximately ten staff and specialising in flexographic packaging. Mark Vaus, a current director of the Company joined as a director and shareholder in 1997. At this point the Company’s core business remained the same however, turnover had increased to approximately £1.3M per annum.
In 2013 the Company's shares were sold to the Chemence Group (‘the Group”) which at that time operated from the USA and the UK. At the time of sale the Company employed approximately fifty staff and had a turnover of approximately £5M per annum. Around this time the Group also purchased businesses in France and Spain which ultimately put a financial strain on the Group and in turn on the Company.
In 2013, three of the Company's main customers merged resulting in approximately 50% of the Company's business relating to one customer. An exclusivity deal was entered into with this customer but over recent years the relationship deteriorated to the extent that in January 2019 the Company commenced legal action against the customer. Whilst not severing trade this did have a material impact on the level of business obtained.
Administrators' statement of proposals (2019-12-13) · Companies House register