Electronics firm sold in cut price deal [Western Daily Press (UK)]
(Western Daily Press (UK) Via Acquire Media NewsEdge) A company which had a turnover of almost Pounds 2.5 million some three years ago has been sold for just Pounds 50,000.
Electronics firm Marsden Smith, which has its headquarters in Westonsuper-Mare, went into administration in October with debts of Pounds 350,000.
Over the last three years there has been a series of moves to try to save the operation from complete closure. But the cut-price sale is likely to mean that people owed money by the company are now likely to lose out.
The firm was put on the market in a bid to save it and the jobs of its 15 staff. Two bids of Pounds 35,000 and Pounds 40,000 were rejected by the administrators. The company makes circuit boards for a range of companies operating in various sectors and its customers include defence and gaming companies. The business was flying high but has seen orders drop off dramatically following the spending cuts and austerity measures introduced by the Gover nment.
The company, which is based in Winterstoke Commercial Centre, was formed out of the ashes of Seatech - which was forced into administration in 2007.
Simon Plant and Daniel Plant, from insolvency specialists SFP were appointed joint administrators of Marsden Smith, at the end of October when the company ran out of funding.
The company had thrived in recent years and at its height in 2010 it had a reported turnover of Pounds 2.4 million thanks to the demand for its circuit boards. The firm agreed to go into voluntary liquidation in 2013 to repay creditors over time but the latest administration means that is not likely to happen.
A statement from the administrators said: "It is understood that cash-flow difficulties persisted and the company was unable to invest in additional levels of staffing to enable it to take on additional work. Further, the company was unable to benefit from lower supply costs from alternative suppliers as credit terms could not be obtained.
"This effectively meant that the terms of the CVA could not be adhered to."
Administrators rejected the original bid of Pounds 35,000 from Virtuose Circuits and a subsequent bid of Pounds 40,000, before agreeing to sell Marsden Smith's business and assets for Pounds 50,000. Lloyds Bank and ABN Amro are expected to lose out on debts of Pounds 44,811 while trade and other creditors are set to miss out on all of their claims valued at Pounds 296,843.
The company went into administration owing a total of Pounds 341,654.
Pounds 50,000 How much Marsden Smith was eventually sold for
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