J & T Blacksmiths Limited (SC067018): administration
- Status
- Administration ended
- Administration began
- 2013-02-19
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1979-02-05
- Location
- Edinburgh
- Industry
- 25110 Manufacture of metal structures and parts of structures
Why it went into administration
- Cash flow / liquidity pressure
From the administrators' statement
The Company was incorporated in 1979 and has been providing steel works to major contractors and utility companies. The Company is recognised as one of the leading fencing and steel staircase fabricators in Scotland due to its highly skilled work force and membership to industry recognised quality schemes. The Company works closely with a wholly owned subsidiary William Crawford & Son (Contractors) Limited (“WC’), who is also in Administration with practitioners from Begbies Traynor (Central) LLP.
Due to the decline in the economic climate within recent years the Company has experienced falling profit margins; together with a slow reaction to market movement lead to significant cash flow problems. The Company sought advice from its accountant and financial advisers in January 2013 following which it was concluded that in current market conditions the Company stood little chance of trading out of its difficulties. Accordingly, the decision was made by the directors to place the Company into administration.
Prior to the appointment, the Administrators conducted a review of the business to assess the optimal strategy in order to protect value and maximise the retum to creditors. It was determined that a period of trading could be implemented whilst a buyer for the business as a going concern was sought. The Company is continuing to trade under the contro! of the Joint Administrators and it is believed that the Joint Administrators will secure a better return for the Company's creditors as a whole than would be likely if the Company were wound up (without first being in administration).
Administrators' statement of proposals (2013-04-17) · Companies House register