Please visit http://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Wednesday, 26 October 2011

Norian Beds in Administration

Norian Beds, which has sites in Trowbridge and Bridgewater,  has gone into administration putting 140 jobs at risk.   The business, Norian UK Limited, is a family run firm which has operated for 27 years.  The firms managers claim that the problems at the firm came when Focus DIY went into administration owing them £250,000.  The firm entered into a company voluntary arrangement from 2009 but no doubt the loss of that income made it no longer viable.  The company had a turnover of £18m in 2010.

This is yet another firm with over 100 employees that has gone into administration in the last two weeks.  It is likely there are others that have not been publicised.  In many cases the administrators do not want publicity as it may make it harder to collect money in on behalf of the creditors.

When a large customer goes into administration it is very hard.  So how can you protect yourself?  When dealing with large customers it is difficult to ask for tougher credit terms.  The best approach in this market is do not assume that a large household name customer is by definition a good credit risk.  Look for warning signs of a business in difficulty

If you supply a firm that is in administration look at our help for suppliers pages.

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Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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