Wheatons Exeter has gone into administration
17-May-2017Wheatons Exeter has fallen into administration only one year after it was bought in a Management Buyout following the administration of Polestar. Gareth Roberts of KRE Corporate Recovery has been appointed the administrator. The firm continues to trade while a buyer is sought. 24 staff have been made redundant including the managing director. Another 40 jobs are at risk.
"The hope is that if we can get the customers on board, and we're already talking to them, then we would hope to complete the work in hand over the next couple of weeks, while we look for a buyer for the business," said Roberts.
The business was forced into administration according to Mr Chard, the managing director,
When they lost a major contract that was to be started in April. Also HMRC rejected a time to pay arrangement in relation to the PAYE from last year although 2017 was up to date. This was despite booked in jobs being just moved to August/September resulting in a cash gap which couldn’t be bridged. Another problem was they had lost their main colour press. Mr Chard said “We always knew it was going to be bloody tough, not helped by the fact that we lost our colour press in [last year’s] administration, so effectively we were one press, a cover press and one binding line – which we knew would make it difficult to getting the momentum going.”
Wheatons Exeter was targeting sales of £6m in the first 12 months after emerging from the administraiton of Polestar.