Eclipse Generics Limited (SC245539): administration
- Status
- Administration ended
- Administration began
- 2022-05-06
- Administrators
- Philip Joseph Dakin, Michael Lennon
- Administrators' firm
- Kroll
- Incorporated
- 2003-03-12
- Location
- Edinburgh
- Industry
- 46460 Wholesale of pharmaceutical goods
Why it went into administration
- Funding withdrawn / unable to refinance
- Sustained trading losses
- Parent or group failure
- Regulatory change or action
- Competition / price pressure
From the administrators' statement
Despite being a relatively new entrant to the competitive UK market, the Group traded successfully and was growing until the beginning of 2021, when a breach of the MHRA licensing regulations which resulted in an immediate suspension of Testerworld’s and Eclipse’s regulated licences, meaning trading temporarily ceased for a prolonged period.
Although the Group secured the ongoing support of its secured creditors at that time, following discussions with the MHRA the licences were subsequently reinstated subject to certain restrictions and a requirement for the Group to improve certain aspects of its IT systems and stock tracking capabilities. The period of suspension and subsequent restrictions resulted in a significant and ongoing reduction in revenue (c25%) which the Group found difficult to replace and ultimately had a material impact on the Group’s profitability and cash flow.
Despite further funding from the secured creditors at that time, the Group identified a further funding need over and above the existing facilities of £2,500,000 to support ongoing trade.
Administrators' statement of proposals (2022-07-04) · Companies House register