Almost 200 jobs at risk as industrial supplies firm collapses into administration
An industrial supplies company which has its head office in Wednesbury has collapsed into administration after suffering Covid-related losses.
Damian Webb, Tom Straw and Chris Lewis of RSM UK Restructuring Advisory were appointed joint administrators of Monks & Crane Industrial Group on 24 February.
Founded 160 years, the company specialises in the sourcing and distribution of high quality industrial products for customers across the UK.
Turnover was approximately £40m in 2022, with the company employing 190 people.
The business was severely impacted by Covid shutdowns and supply chain issues. This was compounded by recent inflationary pressures and the consequent increase in its borrowing costs which significantly increased operational losses.
Management have explored a range of options to rescue the business, including implementing a turnaround strategy. However, the inability to access new funding undermined this process with the directors concluding the company could not continue to trade in the absence of new funding.
The administrators are working with customers and suppliers to mitigate disruption and loss to them while also exploring the potential sale or transfer of business and assets in order to try and protect jobs.
Webb said: “Regrettably this 160-year-old company has been placed into administration despite the efforts of the management team to recapitalise and rescue the business. This business failure illustrates the issues facing many UK SMEs in the current challenging economic environment.”