UK family-owned ground specialists plunges into administration | UK | News | EUROtoday

A family-run firm based mostly in Scotland has collapsed into administration after greater than 40 years in enterprise. Industrial Floor Treatments Limited appointed directors final week, leaving all 43 of its workers redundant. The agency, which was based in 1985 and based mostly at websites in East Kilbride and Bishop Auckland, supplied flooring methods and set up providers for shoppers throughout Scotland and northern England.

Administrators BTG stated the enterprise had skilled money move challenges linked to financial uncertainty within the development sector, together with decreased margins and seasonal income. Thomas McKay, managing accomplice of BTG informed The Herald: “Businesses operating in the sector are also particularly exposed to fluctuations in workload throughout the year, and these seasonal patterns can intensify cash flow pressures for firms already operating in a difficult market.”

He added: “Unfortunately, despite a great deal of support for the business by the directors in recent years, the financial position of the company deteriorated and meant that it was no longer able to continue its operations and was forced to cease trading.”

Mr McKay confirmed that every one 43 members of workers had been made redundant and stated BTG was “working closely with those affected to help them access the support and financial entitlements available to them”.

These will embrace help from the Partnership Action for Continuing Employment (PACE) and the Redundancy Payments Service.

“Our priority is to ensure they receive the guidance and advice they need during this process, and to maximise the return from the sale of assets including property and stock to benefit the creditors,” he stated.

Figures present that the development business recorded 3,950 insolvencies during the last 12 months, marking the best of any UK sector and accounting for 17% of all firm failures throughout the nation.

The sector’s struggles will be linked to a variety of components, together with elevated labour and materials prices, workforce shortages and cashflow pressures, with some enterprise additionally taking over contracts past their capability, resulting in overtrading.