Golden Valley Pallet Wrap Specialists Limited (06796773): administration
- Status
- Administration ended
- Administration began
- 2015-09-09
- Administrators' firm
- Begbies Traynor
- Formerly
- Golden Valley Packaging Solutions Limited
- Incorporated
- 2009-01-21
- Location
- Southend-on-Sea
- Industry
- 82990 Other business support service activities n.e.c.
Why it went into administration
- Bad debts / customer insolvency
- Management failings / irregularities
- Competition / price pressure
From the administrators' statement
The Company was incorporated on 21 January 2009 and sold pre-stretched, standard and performance film uttised in hand and machine pallet wrapping together with sales of pallet wrapping machines The Company operated from leasehold premises situated at Units F & G Stonedale Road, Stonehouse, Gloucestershire and had 12 employees The business was based around the supply of hand and machine pallet wrap and specialised in high performance film which was imported from Europe, Turkey and the Far East
The business model was based on holding a wide range of stock which was supplied to UK customers nationwide In November 2011 the Company suffered a fraud which resulted in a bad debt of £140,000 To recover from this loss, the directors injected personal funds to maintain working capital Regretfully the Company continued to suffer bad debts during the following years as smaller customers struggled with the recession
In an attempt to improve margins, the directors focused on performance film which utilised the latest technology and was sourced tn the Far East To import goods from foreign suppliers the Company needed to order goods 12 weeks in advance and also to pay for the goods with order Whilst the newer film produced a better margin, it required funding which put pressure on working capital To assist cash flow, Close Brothers provided confidential invoice discounting facilities The facility was later changed to Lloyds TSB Commercial Finance Limited and advances to the Company were secured by a debenture dated 1 July 2013
Administrators' statement of proposals (2015-10-13) · Companies House register