Sat, 14 Jun 2014 | BUSINESS SALE
An insolvent Harlow-based electrical wholesaler has been successfully sold out of administration.
KR Electrical Wholesale Limited appointed insolvency practitioners SFP as administrators on 2 June 2014 after the company amassed substantial debts to a number of creditors. This week it was reported that SFP’s Simon Plant and Daniel Plan had secured a sale of the business and assets as a going concern to an unnamed third party, preserving all five jobs in the process.
The company was established in 1996 and turned over around £700,000 last year. It had traded with cash flow challenges and after a poor trading period in Spring 2014, it had to credit various cancelled jobs and stock returns.
Eventually a lack of income and inability to raise additional capital meant the business had no alternative but to seek liquidation in May. One of the company’s debenture holders was made aware of the position and sought to place KR Electrical Wholesale into administration in order to protect the business and give an opportunity to restructure the company.
As Simon Plant commented: “KR Electrical Wholesale Limited has suffered from a lack of cash flow, the lifeblood of any business. Once it started to experience a lack of cash running through its business, debts began to weigh more heavily and without any fresh injection of cash it was placed into administration.
“We have subsequently completed the sale of the business and assets as a going concern to a third party preserving all five jobs in the process.”
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