Coventry manufacturer forced to close with the loss of 31 jobs
A COVENTRY engineering company has been forced to close with the loss of 31 jobs after encountering funding problems.
Despite the closure, administrators appointed to PowerKut said there was still interest in the business from buyers and this was being explored.
Administrators from RSM were appointed earlier this week and said the business had been unable to continue trading within its existing facilities and further funding could not be obtained.
Dilip Dattani, Restructuring and Recovery partner at RSM, and one of the joint administrators said: “The company suffered from an increasing number of overdue debts from customers which caused a substantial strain on its cashflow. This meant that administration was necessary in order to protect assets for the benefit of creditors.”
Its inability to attract funding was at odds with its record, as it had secured banking deals with RBS in both 2011 and 2013, the latter worth £1.2m.
The funding enabled expansion of the business although it required additional top-up investment from peer-to-peer network ThinCats, organised by Ludgate Finance.
The additional funding of £170,000 helped the firm to invest in new equipment, which it said three years ago would enable it to bring back in-house £100,000 of previously sub-contracted work.
Peter Everitt, managing director at PowerKut, said at the time: “Securing such major investments has enabled us to become the masters of our own destiny and expand in our own way and at our own pace.”
