Great Northern Envelope Company Limited (02212509): administration
- Status
- Administration ended
- Administration began
- 2018-02-12
- Administrators' firm
- Begbies Traynor
- Formerly
- Standtype Limited
- Incorporated
- 1988-01-21
- Location
- Leeds
- Industry
- 17219 Manufacture of other paper and paperboard containers
Why it went into administration
- Sustained trading losses
- Rising costs / inflation
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Competition / price pressure
From the administrators' statement
The Company was incorporated on 21 January 1988. It specialised in the manufacture and supply of envelopes, operating from a centralised leasehold site in Leeds (“the Property”). Services provided by the Company included in-house sheet printing, envelope manufacturing and envelope overprinting facilities.
The Company banked with Lloyds Bank ple (“LBP”), which provided general banking facilities with no overdraft facilities. However, LBP did provide approximately £474k of lending, via its asset finance division, relating to two separate hire purchase agreements. In 2016, the Company entered into a confidential invoice discounting agreement with Lloyds Bank Commercial Finance Limited (‘LBCF”) which holds a debenture and a chattel mortgage by way of fixed and floating charges over the entire assets and undertakings of the business; both created on 8 June 2016. The charges were also created as security against an additional loan provided to the Company. As at the date of our appointment, LBCF had outstanding lending of £3.43m.
The reasons for the Company’s insolvency This section should be read in conjunction with Appendix 4.
Administrators' statement of proposals (2018-03-05) · Companies House register