Wed, 21 Dec 2022 | ADMINISTRATION
Administrators from Interpath Advisory are seeking a buyer for the business and assets of Armadilla, a Scottish designer and manufacturer of eco-friendly luxury modular accommodation pods. Despite a strong order book, the company entered administration due to cashflow issues, exacerbated by the impacts of Brexit and COVID-19.
Armadilla’s cashflow troubles stemmed from order deferrals in the wake of the COVID-19 pandemic, the rising costs of raw materials and the growing cost and fulfilment times of exporting to the UK following the UK’s exit from the European Union. Administrators say they are hopeful of securing a future for the business.
Despite the management team’s “exhaustive efforts” to keep the company operating, its cashflow issues proved insurmountable, resulting in the firm appointing Interpath Advisory’s Blair Nimmo and Alistair McAlinden as joint administrators on December 20. Following the appointment of the administrators, the firm has ceased trading, with all 29 staff made redundant.
The joint administrators will now seek to find a buyer for the company and its assets, including intellectual property and an order book comprised of a significant pipeline of projects in Scotland, the USA, Dubai and the Algarve. The firm, which is based in Bonnyrigg, was founded in 2010 and produced luxury modular accommodation, including glamping pods, for clients in the leisure, wellness and education sectors.
In the company’s most recently available accounts, for the year ending September 30 2022, its fixed assets were valued at £1.86 million and current assets at £1.24 million, with net assets amounting to £1.31 million.
Joint administrator Blair Nimmo commented: “Armadilla had forged a reputation for its distinctive, environmentally sustainable and high-quality range of luxury accommodation pods, winning the 2020 Queen’s Award for Enterprise in the Innovation category.”
“Unfortunately however, the disruption encountered by the business during the COVID-19 pandemic, coupled with soaring costs, meant that the business was no longer viable in its current form.”
Joint administrator and head of Interpath Advisory Scotland Alistair McAlinden added: “We are now looking to find a buyer for the business and its assets, including its intellectual property, structural designs, architectural drawings and CAD (computer-aided design) tooling, the current work-in-progress and the customer order book. Given Armadilla’s pedigree, we very much hope to be able to secure a future for the business, and so would ask any interested parties to make contact with us at the earliest opportunity.”
Read about how the issues facing UK businesses are driving inbound M&A.
Find businesses for sale here.
If you are looking for an exit, we can help!.
For Sale is a highly profitable and well-regarded luxury kitchen design and installation business, operating out of a high-end showroom in a prime high-street location on Wellington Road in the center of Stockport.
This business has over 3 decades of experience in manufacturing and installing high quality, bespoke kitchens. Its style typically marries clean lines with a hand painted finish, complemented by a range of top end worktops and appliances.
A strong, profitable company positioned in the high growth electronic and automation sectors. The business develops wiring and electronic control systems used in a wide range of industrial, automotive, marine and capital goods markets.
17
|
Apr
|
Hoxton Capital Management targets more M&A after double acquisition | BUSINESS SALE
International independent financial advisory firm Hoxton Cap...
17
|
Apr
|
Bristol printing firm rescued in pre-pack deal | BUSINESS SALE
A printing company based in Bristol has been saved after bei...
17
|
Apr
|
South Wales merger creates property and business finance services portfolio | MERGER
The merger of two firms based in South Wales has created a c...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
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.