Triple blow brought down Notts manufacturer
The death of a director, the loss of a major customer and a deal to sell the company that fell through at the last minute played a part in seeing a Nottingham manufacturer entering administration, TheBusinessDesk.com understands.
Farnsfield Nottingham Cables designed and made conductors and specialised cables for use in the offshore, marine and fire protective industries. The sole director of the business called in Begbies Traynor on 26 November last year to discuss the financial position of the company. The death of a second director at the beginning of 2019, combined with a big customer taking their business to a competitor had hit the business hard, according to documents we have seen.
Despite this, a deal to sell the company to ATAG Cable Solutions appeared to have been agreed. However, this fell apart at the eleventh hour when Nottingham Cables received a bill for £660,000 – which scuppered the deal for ATAG to buy the shares, despite it maintaining an interest in purchasig the business and assets. The director of Nottingham Cables denied any prior knowledge of this charge calling it a “set-up”, according to administrators.
On 16 December, ATAG bought the business and assets of Nottingham Cables for £20,020. The firm was sold owing unsecured creditors £35,439. Administrators say they don’t expect them to receive what is owed.
