Denka Limited (05645619): administration
- Status
- Administration ended
- Administration began
- 2014-04-25
- Administrators
- Gerald Maurice Krasner, Ian Franses
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2005-12-06
- Location
- Newcastle upon Tyne
- Industry
- 45310 Wholesale trade of motor vehicle parts and accessories
Why it went into administration
- Competition / price pressure
From the administrators' statement
The Director has provided us with the following information -
Denka Ltd was established at the end of 2005 to trade as a battery importer and distributor A range of products were offered to the trade from small specialist batteries to car and large truck batteries - car and truck battenes being the vast majority of sales Product was distributed on our own vans and also via pallet carers all over the UK A second small satellite depot was opened in Maidstone in 2009
The UK business had started to struggle with margins and sales due to competition but we had recently started doing some export business that was growing So we put more money into the business by increasing the share capital over the last couple of years At this time the UK business continued to struggle but we substantially increased the volume of low margin export business with the hope that the increased volumes and sales would bring extra profit and better purchasing opportunities to increase margins In order to fulfil the expected requirements we needed more space to store product and process the orders A third warehouse was taken on in Birmingham with more staff and equipment in order to cope with the increased schedule of demand for export and also with a view to increase business in the densely populated West Midlands where we had no presence and the UK business as a whole The startup of Birmingham took longer than expected and also cost more than expected It also increased the overall running costs
Administrators' statement of proposals (2014-06-04) · Companies House register