Updated: 25th April 2017
Mechanical engineering company, Alatas Engineering, specialise in the repair and testing of hydraulics. The Bradford-based company was established in 2000 under its original name Micron Precision Engineering. The business operates from a specialist workshop, and at the time of the administration, the company had an annual turnover of £1.5m.
Following a series of exceptional circumstances the company experienced crippling cash flow issues. As a result of the downturn of the oil and gas industry there was a decline in orders from offshore customers. The company also suffered the loss of a key client who set up as a competitor; this loss was compounded when several key members of staff defected to this newly-formed rival company.
Julian Pitts of Real Business Rescue (part of the Begbies Traynor Group), placed Alatas Engineering into administration on 27 September 2016. Alatas continued to trade while a buyer was located, and a sale negotiated.
Following an accelerated marketing process, a sale of the business and its assets was agreed and subsequently completed on 17 October 2016. This sale ensured the continuation of the company and in the process safeguarded the jobs of 16 employees
“ Unfortunately, Alatas was a victim of unforeseen changes in market conditions. However, with its strong reputation within the sector as a one stop shop for engineering and hydraulic repairs, we were confident that it had a viable future. “Having undertaken an accelerated marketing process, we were swiftly able to conclude a sale which not only enabled the business to continue to trade, so saving jobs and contracts for suppliers, but also realised the best return for creditors. ”Julian Pitts, Regional Managing Partner
13th October 2021
The Bank of England has said it anticipates that rates of corporate insolvency will increase in the coming weeks following the removal of restrictions on winding up petitions.Read More