Metalrax announced Tuesday that it was set to fall into administration after its working capital worsened and attempts to refinance failed.
The AIM-listed supplier of specialist engineering and consumer durable products said that as a result of trading falling below expectations it will appoint Will Wright and Mark Orton of KPMG as joint administrators.
The company has struggled, particularly in its Consumer Durables division, since the loss of a major contract in July last year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sales volumes have fallen below expectations and as a result the group's funding availability has dropped significantly.
"Although the directors have sought further financing to allow the company to continue trading, such financing has not been forthcoming," the group said in a statement.
"It has therefore become evident that the only course of action available for the board is to place Metalrax and certain of its subsidiaries into administration."
The group has consequently suspended its shares from trading on AIM pending clarification of its financial position.
RD
-
How Avios points work: how to collect and spend themAvios points offer worthwhile rewards for the savvy traveller. We explain how to collect, keep track of, and make the most of your Avios points
-
Unilever braces for inflation amid tariff uncertainty – what does it mean for investors?Consumer-goods giant Unilever has made steady progress simplifying its operations. Will tariffs now cause turbulence?
