Case Study: Matt Engineering Limited - Administration
Trading Administration following appointment by the Qualifying Floating Chargeholder
Matt Engineering specialised in the manufacture and machining of steel fabrications. Based in Hull it employed 60 staff and had annual turnover of £4.5m. Over 70% of its business was with one customer, however the agreed pricing did not reflect the work involved which resulted in the company suffering losses and falling into financial difficulty. When it became evident that the position was not recoverable the secured lender appointed Bridgewood as administrators.
On the day it went into administration the company had no more than £13k in the bank, virtually no work in progress and a significant cost base, including 60 staff. The Administrators took the decision to make 47 staff redundant immediately, retained a core capability with the remaining 13 staff. Work in progress was completed and some additional work secured, which enabled the business to be successfully traded whilst a buyer was found.
The Administrators were able to generate significant interest in the business, resulting in an agreed sales of the assets within 4 weeks. 13 jobs were secured and the buyers were also in a position to re-employ some of the staff who had previously been made redundant.
We were very pleased to secure this sale, from a difficult starting position, which delivered a positive result for all the stakeholders in the administration
Bridgewood is a trading style of Bridgewood Financial Solutions Limited (Company No: 06957765). Registered Office: Cumberland House, 35 Park Row, Nottingham, NG1 6EE. Registered in England and Wales.
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Thomas Grummitt and Andrew Smith are licensed to act as Insolvency Practitioners in the UK by the Insolvency Practitioners Association. In carrying out all work related to an insolvency appointment, insolvency practitioners are bound by the insolvency code of ethics and are subject to the regulations and guidance of their authorising body. Details of the code of ethics, statements of insolvency practice and other regulations and guidance issued by the Insolvency Practitioners Association can be found here: