Thu, 09 Mar 2023 | ADMINISTRATION
Administrators are seeking a buyer for Wednesbury-based industrial supplies firm Monks & Crane Industrial Group, following the company’s collapse. The company entered administration last month as a result of COVID-19-related losses.
Monks and Crane specialised in sourcing and distributing industrial products, including maintenance products, safety equipment, protective clothing, hand and power tools. The firm was founded in 1862 and had grown to become a major supplier, serving clients from sectors including oil and gas, marine and aerospace.
The business was acquired by investment firm GIL Investments in 2018 from previous owner Würth. Despite turnover of close to £40 million in 2022, the firm had been severely impacted by COVID-19 and its associated lockdowns.
These issues were further compounded by supply chain disruption, inflationary pressures and increasing borrowing costs, which contributed to the company seeing operational losses. Monks & Crane’s management explored a range of options, including a turnaround strategy, to secure the business’ future.
However, this process was undermined by the company’s inability to access new funding, meaning it could not continue trading. As a result, RSM UK Restructuring Advisory’s Damian Webb, Chris Lewis and Tom Straw were appointed as joint administrators on February 24.
The joint administrators will now seek to secure a sale or transfer of the business and its assets, while working with the firm’s customers and suppliers to mitigate disruption and losses.
In a statement, joint administrator Damian 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.”
In Monks & Crane's most recent accounts filed at Companies House, for the year ending December 31 2020, its fixed assets were valued at £3.2 million and current assets at £24.5 million, with net assets amounting to £11.6 million.
Read about finding M&A value during an economic downturn.
Click here to view the UK's latest distressed businesses.
View recent UK administrations.
This electrical wholesaler and lighting supplier, based in the South East of the UK, offers a robust platform with a well-established and loyal customer base across trade, commercial, and public sectors.
This wholesale flooring and tile retailer in Berkshire offers a substantial display area featuring prestigious brands like Woodpecker and Ted Todd, situated in a prominent trading position within an industrial estate.
This long-established food distribution company in Kildare boasts a diverse product portfolio, catering to a loyal B2B customer base across deli counters, caterers, independent wholesalers, and food manufacturers.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.