Trade continues for York-based manufacturers following administration
MSS Clean Technology – based in the city of York – were established in 1982. They specialise in the design, manufacture and installation of laboratories, cleanrooms and controlled environments. A highly renowned and specialist firm, they operated globally with a number of blue chip clients within the pharmaceutical, biotech, healthcare and electronics sectors.
In late 2013, a number of factors came to a head which caused significant financial problems for the company, leaving them seeking professional advice. The main factors were:
1) Cash flow problems caused by the continual extension of client payment terms.
2) A poorly performing project that led to a significant loss sustained by the business.
3) Two major projects had been expected to begin at the start of 2014 but hit delays – this had a detrimental effect on the business.
4) An issue with historical costs was discovered and these costs had not previously been taken into account with the business forecasts.
UK’s number one for director advice
We handle more corporate insolvency appointments than any other UK firm; demonstrating our commitment to helping directors and business owners in financial distress. The team are available now - 0800 644 6080
Taking the above issues into consideration and with the company experiencing increasing pressure from creditors, the directors contacted Real Business Rescue to obtain professional insolvency advice and discuss the options available. Based on the advice given, it was concluded that an administration procedure was the most appropriate course of action. The business was placed in the hands of Real Business Rescue administrators on 7 February 2014 and continued to trade while ongoing contracts were brought to completion and a buyer was sought for the business as a going concern.
On 18 March 2014, a sale was completed to a new company, IMCO (121014) Limited, part of Environmental Engineering – a firm which specialises in the design and installation of bespoke engineering solutions. Established in 1991, the company has undergone significant growth during this period. MSS will continue to trade under its original name.
Still unsure whether liquidation is right for your company? Don't worry, the experts at Real Business Rescue are here to help. Our licensed insolvency practitioners will take the time to understand the problems your company is facing before recommending the best course of action going forward based on your own unique circumstances.