Winchester Joinery & Flooring Limited (03657808): administration
- Status
- Administration ended
- Administration began
- 2012-10-15
- Administrators' firm
- BDO
- Formerly
- The Winchester Stair Company Limited
- Incorporated
- 1998-10-28
- Location
- Salisbury
- Industry
- 16230 Manufacture of other builders' carpentry and joinery
Why it went into administration
- Creditor pressure / legal action
- Funding withdrawn / unable to refinance
- HMRC / tax arrears
- Bad debts / customer insolvency
- Sustained trading losses
From the administrators' statement
The Company’s registered and trading office was Moorside Road, Winchester, S023 7SB, its principal activity beng in the yomery market, manufacturing and supplying top quality doors, windows, staircases and flooring for both old and new buildings
Traditionally, the Company had worked closely with the construction industry As a result of the impact of the global recession however the Company has seen its market decline dramatically As a result of the recession the Company had experienced a number of bad debts arising on its remaining customers along with increasingly extended payments terms imposed by customers, meaning that the Company frequently found itself unable to draw funds on its factoring facility This caused difficulties and delays with suppliers Although this was primarily a cashflow issue the principal problem facing the Company and its director remained one of reducing sales agamst high fixed overheads and a diminishing capital availability
The fixed overheads of the Company were high as it employed all of its staff on PAYE and it incurred high rental costs on a building which it no longer needed but on which there was a long-term, and expensive, lease The level of income did not satisfy the level of costs This 1s borne out by the number of times the Company had crossed its overdraft limit in the months leading up to the Administrator's appointment and also by virtue of the fact the Company was experiencing an increasingly number of legal letters from its supphers, culminating with both a visit from HMRC Collector of Taxes and finally the issue of a Winding Up Petition by Timbmet After the director made a payment of an agreed sum from personal funds Timbmet agreed to the withdrawal of the winding up petition
Administrators' statement of proposals (2013-05-31) · Companies House register