A number of UK businesses have collapsed into administration in recent weeks, with a mattress manufacturer, a housebuilder and a party planning firm among those to have fallen into financial difficulty
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A string of UK businesses including a local Devon housebuilder have officially fallen into administration. This has become an increasingly common occurrence, with thousands of companies meeting this fate this year.
As well as Devonshire Homes, recent casualties also include a furniture maker with 150 years of trading history and a party planning firm.
As reported by DevonLive earlier this month, the housebuilder appeared to be seeking a last-ditch rescue attempt after launching an effort to hire administrators.
Devonshire Homes Limited had lodged a Notice of Intention to appoint an administrator, a formal document that essentially gives it 10 business days to find a way to save itself.
The move meant that it didn’t have to pay creditors for that 10-day period while it sought a solution, which could involve securing external investment or selling assets to raise cash.
Devonshire Homes, which lists Ilfracombe, Bideford, Yelland and Bovey Tracey as locations of its current sites in Devon, suffered financial losses in its most recent accounts having secured more than £1.2m in pre-tax profits the prior year.
Now the construction company, which had been operating for more than three decades, has gone into administration, reports the Mirror. Previously trading as Langworthy Construction before rebranding, the firm carried out projects across Devon, Cornwall and Somerset.
From 2008 onwards, it built over 2,000 homes throughout the South West, specialising in traditional rural dwellings with thatched roofs, contemporary apartments and new-build houses, as well as restoring Grade II listed properties.
As we reported, a major issue was caused by a costly foray into trying to build a type of home “outside its core strategy”.
The development in question was already partly built and split into two locations when Devonshire Homes purchased it, but it had a high proportion of timber frame, architect-designed, bespoke houses.
“The group had not built such houses before and significantly underestimated the build costs to build the designs,” the accounts for parent company London & Devonshire Trust Limited state.
“This resulted in the site making a loss and the group considers that the site is a one-off and such sites will never be purchased again where the group does not utilise its own house types.”
It added that this loss would be “exceptional” and so didn’t intend repeating the error.
The mistake accounted for just over £1.2 million in so-called exceptional items, weighing on profits at the company, which also has development sites in Wincanton, in Somerset, and Mabe and Penzance, in Cornwall.
Other firms that have now faced the same fate
Airsprung
The Wiltshire-based mattress and bed maker, which has supplied major retailers for 150 years, has entered administration following challenging trading conditions.
The company exhausted all possible options in an attempt to rescue the business, but was ultimately left with no choice but to appoint administrators
Some 71 staff members were made redundant, while the remaining workforce was retained to support the company’s continuing operations. The business remains operational at present.
Groupia
This stag and hen party organiser, which launched in 1999, has gone into administration. The company specialised in coordinating group trips for stag and hen celebrations.
It has now stopped trading completely, with no new bookings are being accepted.
Groupia representatives confirmed that trips scheduled to depart on or before August 31 would proceed as planned, with full refunds provided for any bookings arranged from September 1 onwards.
Ardmore
In the wake of a major High Court ruling in April, this building contractor has also collapsed into administration.
Contractor Ardmore’s construction group, founded in 1974, includes Ardmore Hotels and Commercial, Ardmore Major Projects, Ardmore Fitout, Landmark Facades and Ardmore Regeneration.
The business, which employed around 77 staff, reported that its difficulties stemmed from a partially completed timber-frame development that proved far costlier to finish than anticipated.
BMB Logistics
The UK food distribution company has entered administration after just three years of trading.
Based in Tonbridge, Kent, the business highlighted its facilities specially designed for “temperature-sensitive goods”, according to its website.
The firm also claimed to be dedicated to “providing a cost-effective, highly efficient service” that enabled them to cater for their customers’ individual requirements. The reasons for appointing administrators remain unclear.