Doors close on engineering firms future

A Coventry-based engineering firm has ceased trading after struggling with trade and cashflow difficulties.

Coventry Engineering Group, based at Paragon Way Industrial Estate and known for its precision static and driven spindle tooling, appointed Craig Povey and Gareth Prince from Begbies Traynor as administrators on July 16.

Despite interest from parties, creditor pressure prevented the completion of a sale, leading to the redundancy of the company’s 31 employees.

The remaining business and assets were sold to Ultimate Precision, a company unrelated to Coventry Engineering, on July 30.

Craig Povey, from Begbies Traynor’s Birmingham office, said: “The company had been suffering from loss of trade and cash flow problems, and despite discussions with several interested parties, a sale could not be concluded before
administration. However, we continued to liaise with those interested parties to secure a sale of the assets of the business.”