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.”
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