70-year-old Scottish sawmill enters administration

Tue, 09 Jan 2018 | ADMINISTRATION

A Falkirk firm that specialises in wood processing has entered administration on the back of a 74-year trading history, with 89 jobs expected to be lost.

James Callander & Son, which was founded in 1946, is a leading softwood supplier to the construction, packaging and fencing supply sectors. The company brings in logs at a rented site in Devilla, Fife, where it sorts and transfers logs to its headquarters in Falkirk where wood is processed and sent to customers.

Despite enjoying successes in recent years and turning over £12 million annually, the firm had made several losses recently prompted by challenging market conditions, funding constraints and disruption to services. In the year up to December 2016, it reported operating losses of £1.3 million; for 2015, these were almost £2 million.

As a result, KPMG’s Blair Nimmo and Tony Friar have been appointed as administrators to James Callander & Son as “funding difficulties” have continued.

The firm have already let go of 89 staff from its 95-strong workforce, with just six employees retained to assist administrators while they attempt to sell the company’s assets, which include stock, plant, specialist equipment and the freehold property in Falkirk.

Nimmo explained: “We will be working with all affected employees and the relevant government agencies to ensure a full range of support is available.

“We will also be exploring the possibility of securing a sale of the company’s assets and would encourage any interested parties to contact us as soon as possible.”

The company first ran into trouble once James Callander & Son breached lending covenants on several bank loans in 2015, meaning they were repayable on demand, causing auditors to include a going concern warning in its accounts for the year.

Since then added financial assistance – including invoice financing facilities, asset finance and bank term loan – was needed to meet day-to-day working capital requirements.


Share this article



Latest Businesses for Sale

Glazing Company
Berkshire, UK Wide

Profitable glazing company in Berkshire. Beloved business with 57 year trading history. Ideal bolt-on business for the glazing industry. Offers invited.

Asking Price: £325,000
Turnover: £604,646

Playground & Sports Surfacing Supplier
Wales, UK

Delivers high-quality play and sports surfaces, play equipment and street furniture. Well-respected reputation with clients in its sector. An accredited member of several renowned associations. North of Wales based business. Offers invited.

Asking Price: Offers Invited
Turnover: £2,120,000

RELOCATABLE


Multi Facet Sign Writing & Tool Business
West Midlands, UK

Large multi facet sign writing and tool business. Retainership available. Loyal client base. Offers invited.

Asking Price: £1,100,000
Turnover: £1,500,000


View more businesses for sale

News Search

Latest News

 
17
 
Jul
 

Preston caravan manufacturer seeks buyer following administration | ADMINISTRATION

A caravan manufacturing business in Preston is on the lookou...

 
16
 
Jul
 

Farsound Aviation sold to AGIC for £115 million | BUSINESS SALE

A supply chain management company operating in the aviation ...

 
15
 
Jul
 

Specialist engineering firm forced to appoint administrators | ADMINISTRATION

Rail contracting company Aspin Group Limited has been forced...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
17
 
Jul
 

Preston caravan manufacturer seeks buyer following administration | ADMINISTRATION

A caravan manufacturing business in Preston is on the lookou...

 
16
 
Jul
 

Farsound Aviation sold to AGIC for £115 million | BUSINESS SALE

A supply chain management company operating in the aviation ...

 
15
 
Jul
 

Specialist engineering firm forced to appoint administrators | ADMINISTRATION

Rail contracting company Aspin Group Limited has been forced...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources