Wed, 19 Sep 2012 | ADMINISTRATION
Fuel business Samuel Cooke & C. has entered administration as an unexpected loss and restructuring process proved too much for the company to handle.
Based in Burnley, the business has roots dating back to 1845 and distributed fuel and lubricants to a mixture of retail, agricultural, industrial and residential customers in the north west of England, employing around 100 staff.
Unfortunately, the founding of its sister outfit Company Fuel Cards in 2010 resulted in a number of problems for the firm. The company operated a fuel cards business to commercial customers but reports revealed that it had been funding losses since its inception.
In July of this year, insolvency practitioners from KPMG were called to put the business in administration as the losses became too great to handle and assets worth around £1.17 million were sold off.
The administrators' report read: “In order to cover some of these losses, the directors sold its Barnsley depot for £3 million and restructured the business.
“Prior to the completion of the sale, the company suffered an unexpected loss in relation to a specific group of customers, totalling approximately £2.1 million, which placed the business under further cash strain.”
Creditors refused to fund the shortfalls of the business, predicting losses in the future, forcing the company into administration. KPMG was able to arrange a number of deals regarding the Samuel Cooke's assets, including a deal with Bury-based Crown Oil to acquire the customer information and intellectual property of the firm for £300,000; and a further agreement with Halifax-based Craggs Energy to buy Samuel Cooke's depot in Padiham and its stock, vehicles and machinery for £475,000.
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