Wed, 22 Dec 2021 | ADMINISTRATION
Retail display firm Kesslers International has fallen into administration, after accruing substantial losses due to cost inflation and the impact of COVID-19 on retail. The company, part of the Hexcite Group, formed in 1888 and provides point-of-sale and point-of-purchase retail equipment and services including design, engineering, installation and customer service, to a range of domestic and international customers.
Kroll Advisory’s Philip Dakin and Michael Lennon have been appointed as joint administrators to the company. The administrators are undertaking a substantial restructuring of the company’s operations, which will include 125 redundancies among 160 staff, and will market the remaining business for sale.
In its most recently available accounts at Companies House, for the year ending December 31 2019, Kesslers International reported a post-tax loss of £367,845 on revenue of £20.3 million. At that time, the firm’s fixed assets were valued at £1.06 million and current assets at £14 million. Net assets amounted to £153,120.
Commenting on the company’s collapse, joint administrator Michael Lennon said: “Attempts to diversify and grow the business through an outsourced supply model were not delivered successfully and it has not been possible to return the company to profitability.”
“The continued under performance in trading and rising costs has resulted in a weakened cash flow position which has led to the appointment of the joint administrators. The joint administrators have taken steps to restructure the trading operations, which has resulted in 125 redundancies.”
Elaghmore, the private equity fund that owns Hexcite Group, has said that other businesses in the group are not affected and are continuing to trade well, with the decision to put Kesslers into administration taken to aid the group’s continued growth.
Elaghmore founding partner Andy Ducker commented: “As a business focused on designing, manufacturing, and installing display units for retail stores, Kesslers has faced unprecedented challenges over the last two years, leading to substantial losses. While there has been some pickup in demand from retailers, it remains highly volatile.”
“Coupled with significant increases in the cost of raw materials and the rent on its manufacturing facility in East London, we have reluctantly concluded the business is no longer viable. As a result, Kesslers has been placed into administration.”
Ducker added: “The other companies that form the Hexcite Group – Blaze Signs, Cygnia Maintenance, and Gardners – are performing strongly, and we look forward to helping them to grow.”
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