Statestrong for sale after second insolvency in 12 months

A NORTH West manufacturer employing nearly 80 people has fallen into administration for a second time in 12 months.

Statestrong Products, which is based in Lytham-St-Annes, Lancashire, and with a production facility in Tarporley, was only rescued in a pre-pack deal in December 2014 led by director Russell Blaikie, but is now in financial trouble again.

Russell Cash and Ben Woolrych, partners at FRP Advisory, the restructuring and business advisory firm, have been appointed as joint administrators to the company, which makes consumer cleansing products for customers ranging from Poundland to Euro Car Parts.

The business is still trading while a buyer is sought.
 
Statestrong supplies more than 500 own branded products including aerosols, bottles and tubs to a broad customer base comprising more than 100 live accounts. The product range is centred on personal health, household cleaning products, and auto and industrial. It has a live order book of £1.5m.

In a statement FRP Advisory said: “The business was restructured in December 2014 and underwent rapid expansion under a new ownership structure but unfortunately this resulted in the company’s working capital facilities being exhausted.”

It added: “After recent efforts to secure further investment failed to materialise, there was no option but to seek the protection of administration, allowing trading at Statestrong to continue.”

Russell Cash, joint administrator and partner at FRP Advisory, said: “Statestrong is a well-known North West business with a long trading history, a fantastic product range and an enviable client base. As joint administrators we continue to trade from both sites whilst seeking buyers for the business.

“There is a robust forward order book and we expect this, combined with the attraction of great facilities and a depth and breadth of loyal customers, will ensure there is interest in this business. We encourage any interested parties to make early contact.”