Another household name looks like it might join the list of companies that have gone insolvent. Team Group who rescued Pickfords, the removals business, last year has reportedly brought in Deloitte, the accountancy firm, to advise on all possible options to stave off collapse of the removals firm. Pickfords has run into trouble in the wake of the housing-market collapse. However, according to the Sunday Times the business had a turnover of £83m in 2007 but operating losses of £7m. Given this loss was during 2007 when the property market was healthy it isn’t really surprising that the business is in deep trouble now.

One option being considered is the “pre-pack” where the business is bought at the same time as going into administration releasing the new owners of the old companies liabilities. This has been controversial as many high profile businesses have chosen this route. Insolvency practitioners are mainly of the view that it is the best way to preserve jobs and pay secured creditors. Unsecured creditors do often find themselves very out of pocket and the speed and lack of consultation in the process does upset suppliers.

Now that spring is in the air you would be forgiven for turning your attention to more summery pursuits. However, the owners of Scotland’s oldest ski centre have decided spring is the time to get people with money interested in buying the resort which is based in the ski fields of Glen Coe.
The owners of Glencoe Mountain Resort hope to add a gondola system and create areas for mountain bikers to bring in more visitors.
Liquidators had been appointed after the Glencoe Mountain Resort company went into receivership in 2004. The site was taken over in a management buy-out in 2007, saving it at the time from liquidation.
Recent heavy snowfalls in the area have reassured investors in winter sports that snow is not going to completely disappear because of a few too many 4X4 cars around!

UK warehouses company Brixton is reportedly looking to sell off some of its major assets, in a bid to raise cash to pay off debts.

The company owns warehouses at Park Royal and Heathrow, though it is unclear at this stage as to which properties will be earmarked for sale.

On March 3rd, the company announced that Peter Dawson, formerly Brixton’s Investment Director, was to be appointed Chief Executive. He succeeded Tim Wheeler who was fired from the company after dithering over a rights issue, which now looks too late to implement as shareholders grow more bearish over the property market. The company has a market value of just #48 million now after its shares crashed 90% earlier this year.

A former Plessey electronics and semiconductor foundry has appointed administrators after sustaining losses.
MHS Electronics Limited was known as Zarlink up until a year ago, when the analogue chip company was sold for one Euro to the French company MHS Electronics.

“We have regrettably had to make 14 redundancies but we are working to secure a going concern sale of this established and highly skilled business,” said Simon Girling, joint administrator at BDO Stoy Haywood. “The contraction of the consumer electronics and technology industries, and the wider economic conditions, have all played a part in MHS Electronics UK Limited’s current difficulties”.

When MHS bought the business from Zarlink, the Canadian-based company incurred a $13 million loss on the sale of the business. MHS also received €2 million towards costs of restructuring.

Fairline Boats, the maker of motor cruisers and yachts up to a value of £2m, has decided not to sell and will instead raise capital from its 3i backers to help it trade through the recession.

3i and Fairline were hoping the business would fetch £100m, and retained bankers Cavendish Corporate Finance in November 2008, however buyers were not forthcoming after having been scared off by the severe curtailing of spending on luxury products.

Candover Investments, the beleaguered private equity finance house, has been forced to write off its £48m investment in Ferretti, the top-end luxury yacht-maker. Analysts comment that Fairline is better off in that it has lest debt than Ferretti, and caters to a broader lower-end yachting fraternity.

Nevertheless, Fairline is acutely aware of the tight conditions and has lowered its sales forecasts by 25% for this year.