Cash flow crisis brought down electronics manufacturer
A Leicestershire electronics manufacturer slipped into administration before Christmas after it experienced problems paying suppliers after a cash flow crisis.
AMG Electronics, of Coalville, called in Rob Adamson and Mike Kienlen of Armstrong Watson to look after the day-to-day running of the firm on Monday 2 December.
The firm was set up in 2002 and is run by current chairman and chief executive Ian Bates. In documents seen by TheBusinessDesk.com, owner Bates struggled to cope with unfavourable repayment terms on finance loans and overlong payment terms from customers putting a squeeze on cash.
Despite this, administrators managed to keep the company trading, with around 10 people being made redundant. Orders from AMG’s biggest customer, Nifty UK, were secured, but with Christmas looming, administrators set themselves a deadline of 20 December to find a buyer for the business.
A buyer was never found, and, on 16 December the remaining staff – around 20 people – were made redundant and the company ceased trading.
AMG designed, assembled, tested, inspected, repaired, reworked and refurbished printed circuit boards, photomultipliers, wired equipment and systems for industry, commerce and scientific research. When the company ceased trading it owned just over £2m to unsecured creditors.