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Mark Ranson and Mike Kienlen of Armstrong Watson’s Restructuring, Recovery and Insolvency practice were appointed Joint Administrators to Benfield Shrink & Seal Limited on 17 January 2017,
The Company, which is based at the Port of Tyne in South Shields, has used the trading style Benfield Pack and Wrap since 2014. The Company provides contract packing services to a number of well known manufacturers of consumer products and has achieved BRC accreditation in Consumer Products.
Earlier this year the Company relocated its operations to its current premises at the Port of Tyne as the lease for its previous premises had expired and the property requires substantial renovations. Whilst trading during the first half of most years had in recent times been challenging, a major contract for the latter half of each year was expected to provide sufficient profit to cover the costs of the move.
Unfortunately, whilst the contract has provided significant turnover for the business in the latter half of 2016, it has not proven to be profitable.
It became apparent to the Company at the end of December that it could not continue to service its liabilities given the lack of profit combined with the quieter trading period envisaged over the next few months. Administrators were therefore appointed to the business.
With the immediate work available to the Company being limited at this time of year, there has not been the opportunity for the Joint Administrators to undertake any trading. As a result, all 23 members of staff were made redundant shortly following appointment.
Mark Ranson, Head of Restructuring, Recovery & Insolvency and Joint Administrator, said:
“We are continuing to seek a purchaser for the business and assets of this North East Company and we hope we will be successful in finding a purchaser. However, there is a very limited window of opportunity and I would encourage any potentially interested parties to contact me immediately to discuss their interest whilst we explore all options to realise the assets.
We will be working to provide support to the employees at this difficult time in conjunction with employment specialists so that their claims with the Redundancy Payments Office may be processed as quickly as possible.”
Asset enquiries should be directed to Neil Marshall at email@example.com
Find out more about our Restructuring, Recovery and Insolvency servicesRead more here
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