On the 30 May 2017, it was announced that TBA Textiles, a firm in Greater Manchester, had fallen into administration.
Ben Woolrych and Russell Cash of FRP Advisory were appointed as joint administrators of the company, which employs almost 60 staff. Offers are now being sought for the business while it continues to trade.
Who is TBA Textiles?
TBA Textiles is a Rochdale-based manufacturer of high-performance technical textiles.
The company has been trading for over 120 years, creating an extensive range of high-performance fire protection textiles and products. These include fire curtains, barriers and hoods. The main industries in which it operates are construction, marine and transportation.
Ben Woolrych, joint administrator, stated: "TBA Textiles has earned a well-deserved reputation for reliability of service and quality of products, and has an extensive network of distributors and partnerships with a global customer base across 100 countries. The business has three divisions, covering thermal insulation textiles, speciality products and FIREFLY Fire barriers, each with a broad and loyal customer base."
TBA Textiles entered administration because of "unsustainable pressure" on cash flow. This is evident from the most recent set of accounts (2015), which claimed pre-tax losses of £376,887 on a turnover of £7.6 million.
At the time of administration, TBA employed 57 staff. All have been retained by administrators to help with ongoing trading, however it is not certain that they will keep their jobs.
The administrators are actively seeking viable offers for the business. Woolrych said: "We are marketing the business for sale and we encourage any interested parties to make early contact."
Why is TBA Textiles still trading?
It is not unusual for a company to continue trading while in administration. It halts any legal proceedings and allows the business to operate as usual due to an agreement made between suppliers and administrators. Trading during this period is a key way of liquidating stock, therefore providing vital cash flow for insolvent businesses which is in the creditors interests.
Known as 'trading administration', suppliers are paid at an affordable rate as long as pre-agreed terms continue to be met.
This is a very effective form of restructuring which offers hope to insolvent businesses, like TBA Textiles, and their employees.