Baking tray firm George Wilkinson set for administration

THE parent company of Lancashire baking tray manufacturing business George Wilkinson is set to go into administration, putting hundreds of jobs at risk.

Birmingham-based Metalrax, said challenging trading and lack of funding were the drivers behind its planned appointment of KPMG as administrator and the suspension of its shares on AIM.

The group has been struggling more than six months and has tried to cut costs  – last summer the consumer durables division, which includes George Wilkinson, lost a major contract with Morrisons.

George Wilkinson has been manufacturing in Burnley since 1931 and has been part of Metalrax since 1979. As well as bakeware products it makes wine racks and other kitchen products such as toaster bags and cooking products designed for microwave ovens.

In a statement Metalrax said: “Trading has been particularly difficult in the consumer durables division, particularly in light of the major contract loss announced on July 31 last year and results in this division have been materially below expectations.

“As a result, the sales volumes of the consumer durables division have fallen below expectations. Consequently the Group’s funding availability, which is linked to the sales volumes and represents a large proportion of the group’s overall financing, has been significantly lower than expected.”

“The group is now experiencing significantly worsening working capital. Although the directors have sought further financing to allow the company to continue trading, such financing has not been forthcoming. It has therefore become evident that the only course of action available for the board is to place Metalrax and certain of its subsidiaries into administration.”