Creditors to miss out on £2.25m at collapsed gas cylinder firm
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A Nottingham firm which provides a range of products and services for the testing, refurbishment, storage, transportation and filling of gas cylinders went into administration owing £2.25m to unsecured creditors – who won’t receive any of the cash back.
Documents seen by TheBusinessDesk.com show that administrators from FRP Advisory, who were appointed on April 9, outline the collapse of the hospitality as one of the main divers that Gas Container services fell into trouble earlier this year.
The firm has also struggled to find an alternative site to trade from after the lease with its landlord expired. This, coupled with its bevgas business not trading with a mothnalled hospitality industry, meant that Gas Container Services were coming under cash pressure, with creditors on the verge of taking action.
Some 50 people lost their jobs at the company when it collapsed in April.
John Lowe, partner at FRP, said in April: “The COVID-19 pandemic has had a significant impact on businesses across the UK. The closure of hospitality firms throughout the pandemic has put substantial pressures on those in the supply chain, including Gas Container Services.
“We are now looking for potential buyers of the business as it has been unable to meet its financial obligations and has become insolvent. Our focus now remains on continuing efficient communication with creditors as part of our statutory duties while working with the staff to help them access the appropriate redundancy support.”