Mon, 18 Sep 2023 | ADMINISTRATION
Formula K International Limited, a supplier of go-karts and leisure vehicles to the international amusement industry, has fallen into administration. The company, which is based in Rhyl, was founded in 1997 and supplies to more than 50 countries worldwide.
The firm was the first manufacturer in Great Britain to specialise in providing go-karts and other small vehicles for leisure industry businesses such as theme parks and play centres. Its products are operated in most European countries, as well as the US, the Middle East and the Far East.
Despite the company’s longstanding operations and global customer base, it was heavily impacted by COVID-19, which has had ongoing adverse effects for the leisure industry. It has also more recently been hit by global supply chain disruption.
Paul Stanley and Jason Greenhalgh of Begbies Traynor were appointed as joint administrators to the company on September 7 2023. Company founder and Managing Director Graham Liddle said that a separate company, Formula K Products, which provides aftercare services for the firm’s products, was unaffected.
The company had turnover of £537,000, according to its most recent accounts. As of January 31 2022, its fixed assets were valued at £15,400 and current assets at £232,073, while net assets amounted to £134,828.
Begbies Traynor Regional Managing Partner and joint administrator Paul Stanley said: "Covid forced the global leisure industry into lengthy lockdowns and the knock-on effect continues. Two core markets for this business in theme parks and indoor play areas faced the harshest lockdowns of all sectors which had a major impact on cashflow.”
"More recently, global supply chain issues caused by inflation and delays to shipments of materials into the UK left the company unable to fulfil orders for the first time in its history, despite demand. This has been a well-run and respected business for decades but it has been hit hard by external factors outside of its control."
Graham Liddle, Formula K International founder and Managing Director, said that he had “explored every single avenue to rescue the business” and save jobs but that administration was the only realistic option open to the company.
Liddle added that the firm had received two large orders in recent weeks but couldn’t guarantee clients that the order would be completed due to “the uncertainty of the supply chain of goods required to build the products”.
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