Scotia Binding Supplies Limited (06740138): administration
- Status
- Administration ended
- Administration began
- 2023-06-30
- Administrators
- Steven Edwards, Vincent John Green
- Administrators' firm
- Insolvency Practitioners of Crowe U.k.
- Formerly
- Binding Limited
- Incorporated
- 2008-11-03
- Location
- Tunbridge Wells
- Industry
- 17230 Manufacture of paper stationery
Why it went into administration
- COVID-19
- Weak consumer demand
- Rising costs / inflation
- Energy costs
- Supply chain disruption
- Cash flow / liquidity pressure
From the administrators' statement
In February 2021 the directors identified cashflow issues and advice was sought from their solicitor at Buss Murton Law. The directors at the time, being Phillip Aldred and Christopher Buckingham sought advice from Insolvency Practitioners at Crowe U.K. LLP on the Company’s financial affairs. The options available to the Company were discussed, including informal measures and the formal insolvency processes. This conversation took place whilst at the height of the Covid-19 pandemic whilst the UK was in repeated periods of national lockdown, directly impacting on the Company’s income. With the passing of time and with the lifting national lockdowns, the directors considered that they would be able to trade out of the financial difficulties. A CBIL was drawn by the Company to support trade in this period whilst the overdraft operated by the Company was reduced.
In the period since that first discussion, the economic environment significantly changed as did the trading environment in which the Company traded. During 2021 and 2022, the UK experienced the knock-on effects of the pandemic, with trade supplies severely impacted in respect of availability and the substantial cost of obtaining goods from overseas freight providers. This coupled with reduced demand as digitalised processes were being adopted by clients.
In 2022 and into 2023, and in addition to the above, the Company was impacted by the cost of living crisis, the energy crisis, inflationary pressures, wage inflation, being attributed to the U.K.’s political environment and to the war in Ukraine.
Administrators' statement of proposals (2023-07-18) · Companies House register