Updated: 30th June 2016
A large building supplies company based in Hull has submitted a winding up petition against a Macclesfield-based interior design business in relation to sizeable unpaid debts.
As the creditor in the case, MKM Building Supplies has apparently been working with Edgewood B&I in an effort to have the debts repaid in instalments over time.
However, negotiations on the matter have broken down with the building supplies company having now taken action to legally pursue whatever repayments might be possible, according to the Business Desk.
A spokesperson from MKM Building Supplies explained in a recent statement that the company provided a variety of goods and services to Edgewood B&I between August and October 2015.
The interactions and deals agreed between the two businesses is said to have resulted in Edgewood B&I owing MKM Building Supplies amounts of money “running into five figures”.
“To ensure we treated the company fairly, we negotiated a settlement enabling Edgewood B&I to pay the outstanding balance in instalments, but unfortunately this was not successful. Therefore, we were left with no choice but to submit a winding up petition,” the spokesperson is quoted as saying.
“Whereas it saddens us to have to take this action, we have always been clear in our intentions. We have been in contact with Edgewood B&I throughout the process and have given the company every opportunity to settle the matter.”
From its base in Hull, MKM Building Supplies has been able to establish an annual turnover level in excess of £250 million.
The company’s pre-tax profits were worth £10.8 million during its most recent full financial year, with those profits representing a 46 per cent increase on the same figure for the previous 12 months.
For its part, Edgewood B&I has three office bases in the North West of England, in Macclesfield, Manchester and Northwich.
The company provides various interior design and decoration services.
Expectations are that the winding up petition issued against Edgewood will be heard in Leeds on July 12th unless the situation and the relevant issues can be resolved prior to that time.