A G Block Ltd has entered Creditors Voluntary Liquidation with Jamie Playford of Leading Corporate Recovery appointed as Liquidator on 6 January 2017.
First incorporated in 1967, the Company had developed its own range of ‘Vocational Automotive Trainers’ which are sold to colleges and further education centres around the UK, which are used to train motor mechanics. The Company operated from two main sites near Lowestoft where it also serviced its traditional engineering customers.
The Company, which had a turnover of approximately £1.9m, suffered a small loss due to the collapse in the oil price and increased competition from other oil and gas engineers. The Company also experienced significantly-delayed orders for its vocational training products which affected cash flow.
The directors implemented a number of cost-saving measures and made some previous redundancies in 2016 but, despite these attempts, the Company was unable to meet demands of creditors including HM Revenue & Customs. The Company ceased trading in December 2016 with accumulated creditors of approximately £1.5 million, resulting in 37 redundancies.
Jamie Playford of Leading Corporate Recovery commented: “For such an established business providing generations with employment in Suffolk, it is sad to see a business with such inherent knowledge and ability to suffer in these difficult trading conditions. My team and I are working with the company’s secured creditors to realise the assets in order to raise the necessary funds to repay those debts and then to make a distribution to trade suppliers. I am also talking to the directors about a rescue package which I hope will be finalised very shortly, which will result in many of the former employees being offered new roles in a successor business.”
For any further queries regarding the Liquidation of the Company, please contact mail@leading.uk.com
Notes for editors:
Leading Corporate Recovery is Norwich’s fastest-growing insolvency, restructuring and strategic advisory practice, providing help to businesses and individuals across East Anglia and London. Jamie Playford is a director and licensed insolvency practitioner, and a member of the Insolvency Practitioners’ Association and the insolvency trade body, R3. Jamie has worked in the insolvency industry in East Anglia since the late 1990s.
