Coventry Electrical Wholesalers Limited (03654113): administration
- Status
- Administration ended
- Administration began
- 2011-11-11
- Administrators
- Mark Jeremy Orton, Richard James Philpott
- Administrators' firm
- KPMG
- Incorporated
- 1998-10-22
- Location
- Birmingham
- Industry
- 7487
Why it went into administration
- Creditor pressure / legal action
- Bad debts / customer insolvency
- Cash flow / liquidity pressure
- Loss of a key customer, supplier or contract
From the administrators' statement
The Company was incorporated on 22 October 1998 and its principal activity was a standalone owner managed business specialising in the wholesale of electrical components to the construction industry and independent tradesmen The Company was formed and controlled by its managing director and majority shareholder Simon Collins Since inception the Company had expanded by adding branches At the date of appointment, the Company was trading from four leasehold branches located at Birmingham, Northampton, Nottingham and Tamworth, with a closed leasehold branch in Solihull and a head office based at Birmingham International Park
Since incorporation, the Company had historically been profitable with earnings before tax of £157,000 in the year ended September 2010 In addition, the Company had also been profitable in the 11 months ended August 2011 with estimated earnings before tax of £376,000
In September 2011, the Company’s largest customer, Hulse (Electrical Contractors) Limited, entered Administrative Receivership This resulted in the Company suffering a significant potential bad debt of £729,000 As a consequence of this bad debt, the Company suffered significant cash flow problems resulting in a Winding Up petition being presented against the Company on 7 October 2011 by Novar Ed S Limited The Directors were unable to successfully negotiate a settlement with this creditor which would have resulted in the Winding Petition being dismissed Other creditors were also unable to be paid on their due date and the Directors had opened discussions to arrange payment plans with all major creditors
Administrators' statement of proposals (2012-01-06) · Companies House register