Addspace Furniture Limited (05109783): administration
- Status
- Administration ended
- Administration began
- 2023-01-20
- Administrators
- Steven Muncaster, Stephen Gerard Clancy
- Administrators' firm
- Kroll
- Formerly
- Pinco 2123 Limited
- Incorporated
- 2004-04-22
- Location
- Manchester
- Industry
- 31090 Manufacture of other furniture
Why it went into administration
- Competition / price pressure
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- HMRC / tax arrears
- Creditor pressure / legal action
- Bad debts / customer insolvency
- Sustained trading losses
From the administrators' statement
Prior to the Appointment Date, the Company had made significant losses for the 12-month periods ended 30 September 2021 and 30 September 2022.
The Directors attributed this as a direct result of the economic downturn in the UK, reduced customer orders, together with lower margins resulting from cheaper overseas competitors entering the UK market. As a result of the losses, HMRC liabilities and trade creditors had been stretched. Repayment plans were put in place with these Creditors in order to improve the short-term cash flow of the business whilst trade performance initiatives were undertaken.
The Company historically suffered from under investment in new plant and machinery which in itself compounded the Company’s problems of a deteriorating cash position. Regular machinery breakdowns disrupted sales activity and customer confidence. The majority of the plant and machinery needed modernising to benefit from more complex cutting and finishing to existing product lines, as well as adding new product offerings to the Company's customers. New technology would also have significantly reduced the time taken to manufacture many of the customers product lines.
Administrators' statement of proposals (2023-03-23) · Companies House register