Fabrics firm wound up after death of MD sees finance withdrawn
A major Leicester fabrics company has been wound up after the death of its managing director last year set off a chain of events leaving it unable to to trade.
VM Fabrics, which has two sites in Leicester and a London office supplied fabrics and also had an in-house design service.
However, last July, after managing director Salim Dadabhai passed away, the company’s financier withdrew its supporrt for the business along with an invoice factoring facility.
This withdrawal of support, combined with the company’s obligation to repay the “significant” sum due to the factoring company adversely affected VM Fabrics’ cash flow, said administrators from Moore.
At the time, the company had 17 employees, all of whom have been made redundant.
A spokesperson for Moore told TheBusinessDesk.com: “The company ceased to trade in December 2021 therefore we will be winding it down, with a view to collecting outstanding debtors, selling any remaining chattel assets and ultimately maximising the return to creditors.”
It in latest available accounts made up to the end of May 2020, VM Fabrics turned over just over £10m and made a profit of £217,322.