Peak Toolmakers (Assets) Ltd, the machine toolmaker based in Sheffield, is in administration after purchasing the assets of Peak Toolmakers Ltd in October 2015 – due to a lack of working capital. Peak Toolmakers (Assets) limited was a sister company.
Kelly Burton and Rob Dymond of Wilson Field have been appointed to handle the sale of the business on 1 February 2016.
A number of staff have been made redundant with 13 being retained to complete current orders.
Burton said: “The company had a number of orders but ran into difficulty due mainly to a lack of working capital.”
It is always disappointing when a rescue fails but unfortunately it does happen from time to time as the business may lose orders or the new finance is expensive.
What about section 216 of the Insolvency Act? The new company appears to have a very similar name to the old one. The rule is that as long as it has been trading for more than 12 months if it is connected then that is fine. Although the name with “assets” in it does perhaps imply that it is not a traditional trading company.