Contract Chemicals Limited (11452741): administration
- Status
- Administration ended
- Administration began
- 2020-08-25
- Administrators
- Andrew Poxon, Mike Dillon
- Administrators' firm
- Leonard Curtis
- Formerly
- Newco (PM) Limited
- Incorporated
- 2018-07-06
- Location
- Manchester
- Industry
- 20140 Manufacture of other organic basic chemicals
Why it went into administration
- Credit insurance / supplier credit withdrawn
- Funding withdrawn / unable to refinance
- Weak consumer demand
- Supply chain disruption
- Loss of a key customer, supplier or contract
- Property / lease costs
- Sustained trading losses
- Parent or group failure
- Regulatory change or action
- Competition / price pressure
From the administrators' statement
3.1 The business has its origins dating back to 1977 with the aim of becoming a leading international supplier of fine and speciality chemicals. Specialising in animation, bromination, cyanation, epichlorohyadrin, Friedel crafts and thionyl chloride chemistries, the Company produced a range of multi-application products and offered over 40 years’ experience in contract manufacture.
3.2 The Company was incorporated as Newco (PM) Limited on 6 July 2018. On 12 July 2019, the Company acquired the business and certain assets from the administrators of CCL Realisations (2019) Limited (formerly Contract Chemicals Limited), CCK Realisations (2019) Limited (formerly Contract Chemicals (Knowsley) Limited) and CCP Realisations (2019) Limited (formerly Contract Chemicals Properties Limited), collectively the CCL Group and commenced to trade. The Company changed its name to Contract Chemicals Limited on 15 July 2019.
3.3 CCL Group’s difficulties commenced back in 2017 when the largest customer discovered accounting anomalies in one of its overseas subsidiaries, whereby sales of products had not been secured and inventory levels were much higher than anticipated. The net effect of the over-stocking saw an initial reduction in demand followed by a total curtailment of business, effective from April 2018 for, at that time, an unspecified period.
Administrators' statement of proposals (2020-10-13) · Companies House register