Posted 3rd January

Richmond Cabinet Company calls in administrators

3rd January 2019 - 10:36am
kitchen, money matters, richmond, administration, cabinet, company, kbb, kbbdaily

Hadfield-based Richmond Cabinet Company has fallen into administration, with Paul Dumbell and David Costley-Wood of KPMG appointed as joint administrators of the company on the 20th December 2018.

“Richmond Cabinet Company Limited has traded for over 30 years, but despite significant growth in the first eight months of trading in 2018, an unexpected drop in sales as a result of delays in anticipated contracts, together with contractual issues experienced on a number of large-scale projects, the business considered the ongoing position into the first quarter of 2019," the company told KBBDaily.com in a statement.

"As such, the business undertook a refinance, and group restructure of its operations over the winter shut down so not to disrupt customer deliveries. The business appointed administrators on the 20th of December 2018, and a new company was formed to continue operations going forwards, namely Richmond Furniture Limited."

According to the administrators, the combination of factors led to a “tightening of working capital”, leaving the company in a cash-critical position. Dumbell and Costley-Wood said they approached a range of potential non-trade investors prior to the company filing for administration before eventually approaching trade parties for a possible sale of the business.

However, a sale could not be established in the timeframe, the administrators noted, adding that they will continue to explore a sale of the business. In a letter to Richmond Cabinet Company’s creditors, the administrators said that it is “not currently possible to forecast the outcome of the administration”.

Richmond told KBBDaily.com: "Deliveries have continued unimpeded throughout this process and we retain all 128 staff, and production facilities. The new business will continue to honour customer warranties, and service customers and contracts. We would like to take this opportunity to thank both the customers and key suppliers who have supported us through this complicated and challenging process.”


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