They are one of the largest administration firms in the UK and when companies see financial difficulty, administration firms are where they will turn for professional financial advice, on their business.
Administration causes people to panic, and in this post you’ll find out it’s not always doom and gloom, and there can be light at the end of the tunnel. As it’s always good to end on a positive note, let’s get the bad news out the way first.
The bad news is in Walton Summit, in the Lancashire district. Administrators were called into the troubled manufacturing and distribution centre of exhaust manufacturer, Bosal Manufacturing. After a lengthy marketing period, the decision has been made that a closure is inevitable, resulting in the loss of 116 jobs. T
he problem facing the administrators in finding a suitable buyer to take over the firm was that Bosal Manufacturing is in the business of manufacturing and distribution. Whilst Bosal Manufacturers are the largest manufacturers and distributors of exhaust systems, they don’t own any intellectual property rights for any designs incorporated in their products. That proved difficult to obtain a suitable buyer, in order for the company to continue trading.
What Duff and Phelps were able to do for the firm though, was to establish a sale of some of the company’s assets, which meant that customer orders could be fulfilled. Albeit, the job losses will still go ahead, after the order fulfilments. T
he closure of the Walton Summit branch will only affect that area, and it’s not an overall reflection on the finances of Bosal Manufacturing as a whole. The company will continue its operations as normal, in other manufacturing firms around the UK.
On a more positive note, administrators aren’t always the bad guys responsible for closing businesses and job losses. Their role can be playing the hero by finding a suitable buyer who can take over operations and keep people in employment. That’s the case for Lightning Aerospace.
On July 4th 2012, Duff and Phelps were called into a failing specialist firm in the fabrication, profile cutting, and harnessing business. Upon the joint administrators being appointed to Lighting Aerospace, there were 14 staff made redundant, in order to balance the overheads, while the company begun marketing the sale of the company. 19 staff remained, uncertain of what the future held for them.
The business and the assets of the company were able to be sold to investors, a2e Venture Catalysts, for an undisclosed sum. That secured the jobs of the remaining staff in the company, which now trades under the new name of Lightning Precision Engineering.
For those who find themselves in the frightening situation of their employers facing administration, it’s not something that you need to overly concern yourself with. Administrators are not there to take jobs away, as Duff and Phelps demonstrated by saving the jobs at Lightning Aerospace.
Administrators are in the business of marketing to investors, in the hope of finding a suitable buyer, with the funding and the skills to take a failing business forward, up the profitability and secure the jobs and careers of as many staff as possible.