Invoice discounting firm to take hit from collapsed leather firm

An invoice discounting firm which was owed £171,000 by a collapsed luxury leather products firm is unlikely to see all of the money it is owed, TheBusinessDesk.com understands.

Northants-based Roma Leather had been funded by the invoice finance facility from Ultimate Finance but ceased trading after administrators from RSM were called in at the end of June.

Documents seen by TheBusinessDesk.com say that Ultimate “may face a shortfall”. It is understood that Ultimate has so far collected just over £69,000 owed to it from the Roma Leather debtors list.

Unsecured creditors of the firm are unlikely to receive any of the cash owed to them, leaving them a combined £430,795 out of pocket.

Turnover at Roma Leather was approximately £1.7m in 2022, with the company employing 33 people.

The business was severely impacted by the fall off in high street and online sales which resulted in customers reducing or delaying their demand for the company’s products, say administrators.

Management explored a range of options to rescue the business, including attempting to sell the business and assets as a going concern. However, no party came forward to buy the business on that basis. All employees were made redundant prior to the joint administrators’ appointment and the business has ceased trading.