SFP Completes Sale Of KR Electrical Wholesale Limited
- Published: Thursday, 19 June 2014 10:18
The nationwide insolvency practitioners SFP has completed the sale of KR Electrical Wholesale Limited, after it amassed substantial debts to a number of creditors and was placed into Administration.
Established in 1996, the company was incorporated in 2007 and employs five people from its Harlow site in Essex, turning over circa £700,000 last year.
Historically, the company has traded with cash flow challenges and after a poor trading period in Spring 2014, it had to credit various cancelled jobs and stock returns. Due to the lack of income and inability to raise additional capital, KR Electrical Wholesale Limited was not able to continue trading and liquidation was sought 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.
SFP’s Simon Plant and Daniel Plant – both licensed members of the Insolvency Practitioners’ Association – were then appointed as Joint Administrators on 2nd June 2014.
The Joint Administrator commented that the electrical wholesale industry has been severely affected by the ongoing downturn in the construction sector: “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,” says Simon Plant.
“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.”