Nationwide insolvency practitioner SFP has successfully completed the sale of Stoke-on-Trent based Bennett Manufacturing Services Limited, after it was placed into administration. In doing so it has secured the future of the company’s 110 employees.
Founded in 2009, Bennett Manufacturing Services was a specialist cast iron and aluminium components engineering manufacturer, supplying to leading global construction machine producers.
In 2018, the company reported a turnover in the region of £5 million, but failed attempts to negotiate a ‘time to pay’ plan with HMRC put pressure on finances. The company also suffered a large bad debt of c£190,000 which affected cash flow.
Despite additional funding being raised through unsecured business loans, the company could not keep up with its supplier and HMRC commitments.
The directors appointed SFP’s Joint Administrators, Simon and Daniel Plant, and following discussions the company was placed into administration on 19th June 2019. SFP achieved a going concern sale of the business and assets to BMS Machinery Limited, which has seen the futures of its 110 employees preserved.
“After looking closely at the businesses finances it could not continue trading, hence the sensible decision to place it into administration,” says Simon Plant.
“The new owners have acquired a good business with a strong client base from which they can build, and will be keeping a keen eye on financial management. We are pleased to see that the future of the company has been secured along with a brighter future for its employees.”