Riverside Joinery Company Ltd, based on Barker Street in Norwich, has closed after a downturn in orders for its bespoke staircases and window frames.
The closure, which resulted in 16 employees being made redundant, followed pressure on cash flow caused by a downturn in orders as management struggled to reduce costs any further.
The business had accumulated around £400,000 of debts, of which £12,000 were deposits paid by customers who will now be left without their orders and with no likelihood of any repayment from the liquidation.
Jamie Playford, director at Leading Corporate Recovery, who was appointed liquidator by creditors on 23 February 2017, commented: “It appears that the management had done all it could to try to save the business, including looking at refinancing options and bringing in an angel investor. However, that was not enough for HM Revenue & Customs, who would not entertain any payment plans for the £100,000 owed by the business and so the director had no option but to close. It is a growing trend of seeing HMRC taking a hard stance against businesses that want to restructure but need more time to do so. We are now focussed on supporting the employees with their redundancy claims and finalising the disposal of the company’s assets. Due to the level of debt secured over the assets, we are not expecting any surplus funds to be available to creditors.”
For any further queries regarding the liquidation of the Company, please contact Kelly Goodman at Kelly.goodman@beta.leading.uk.com
Link: www.leading.uk.com/news/
Notes for editors:
Leading Corporate Recovery is Norwich’s fastest-growing insolvency, restructuring and strategic advisory practice, providing help to businesses and individuals across East Anglia and London. Jamie Playford is a director and licensed insolvency practitioner, and a member of the Insolvency Practitioners’ Association and the insolvency trade body, R3. Jamie has worked in the insolvency industry in East Anglia since the late 1990s.
