“There are decades when nothing happens and there are weeks when decades happen” – Vladimir Lenin.
It’s easy to overlook some of the interesting and important business and insolvency news stories you might have missed from this week but don’t worry – we’ve collected them right here for you to catch up on.
So if you want to know what was in the budget and how it could affect your business; why water and energy bills will continue to bite SMEs despite anything announced in the Budget; everything you need to know about Time To Pay Arrangements and what practical steps a business can take if it receives a CCJ – you can read all these stories and more at our advice centre page.
Urban Construction Interiors
A York based construction company that worked with some major retailers such as JD Sports, Monsoon and Primark has gone into administration.
Urban Construction Interiors was facing a range of pressures as many other construction industry firms are. Managing Director Richad Brosenitz said material shortages and labour constraints were applying large pressures to programmes with many constructors experiencing cost overruns.
Additionally, reduced local authority staffing within the planning and technical departments was also delaying the start date of projects.
Reaction Engines
An Oxfordshire based hypersonic aviation specialist has gone into administration this week.
Reaction Engines were based in Abingdon and had been pursuing opportunities to raise further funds to continue developing a hybrid rocket-jet engine.
Unfortunately directors acknowledged that these attempts had been unsuccessful and 173 of the company’s 208 members of staff have been made redundant with immediate effect.
The decision could also affect some of the Formula One racing teams based nearby using Mercedes-Benz engines such as Williams, McLaren, Alpine from next season and Mercedes themselves.
BritishVolt
A company that was due to create a giant Gigafactory in Blyth has finally gone into voluntary liquidation after spending months in administration.
Earlier this year Australian firm Recharge Industries was unable to complete a part-rescue of the collapsed project as they were unable to pay a required £8.6 million.
200 positions were lost in January 2023 when the firm initially went into administration after missing a series of construction milestones.
Smarthub Logistics
A Hertfordshire based constructions logistics specialist is going into administration.
SmartHub Logistics is based in Hemel Hempstead and has a depot in Rainham, Essex with capacity for over 10,000 pallets.
They specialised in logistics, distribution, transport, fulfilment, material handling and recycling.
Last year in their financial results they admitted that the construction industry was undergoing a challenging environment which had seen further delays to project starts but projected that their performance would remain firm.
Hadfield Bakery
A popular Huddersfield bakery with 13 outlets employing 74 people is closing with immediate effect.
Hadfield Bakery informed staff by Whatsapp saying that due to immediate cash flow problems and a review of the company’s financial position, it was found to be insolvent.
Hadfields owner Jonathan Birmingham said: “It’s really upsetting and saddening and I’m in shock a little bit to be honest. We are going into administration straight away.”
Hadfields had been operating in Huddersfield for more than 60 years before being brought out of administration in 2023.
The bakery had faced falling sales and rising costs including energy bills. They also incurred further costs with a move to a modern production facility in 2022 which was a £600,000 investment.
QC Polymer
A West Midlands recycling company which changed ownership earlier this year has gone into administration.
QC Polymer’s plant is now being offered for sale by public tender as a result with the business continuing to operate for the time being after the owners failed to secure fresh investment.
A statement from the business said: “It’s sad to see a green technology business at the forefront of its sector failing due to increased utility costs. This has been brought about by the rising cost of fuel, perhaps it is time for the Government to look at the sustainable environmental businesses in the UK and help them to thrive.”
Grange Day Centre
A care facility and day centre used by hundreds of families in Newcastle is closing after its funding was reduced by the City Council following failure to reach an agreement over a new contract.
A spokesperson for the Centre said: “To run a safe service we need a certain number of staff to look after the people. The contract was only allowing us to employ one person for every ten that attend and we work two people to every ten.
“So for the last three years we’ve had to subsidise the contract because it’s six years old now. The biggest issue within that contact is the whole concept of day service has changed since we came out of Covid. The contract never changed and after several requests for it to be reviewed, it still hasn’t.
“For the past three years the care centre has had to subsidise staff wages from cash reserves to be able to run a safe service. We’ve run out of reserves so we can’t subsidise contracts anymore.”
A statement from Newcastle City Council said: “The Grange is an independent charity and any decision on the future of the Charity must be taken by the Board of Trustees.
“Although The Grange does deliver some work on behalf of the Council, it also delivers a range of services for local people which are arranged and funded by people themselves. Since 2019, the Council has been in contact with The Grange for day services and we are saddened that this arrangement is coming to an end.
“The Council would like to reassure residents that there are other day services available in the city and we will be supporting people with care and support needs to access alternative supports.”
No matter how your business is performing, there are still decisions and changes you can make to see improvements and strengthen your hand in the remaining weeks of 2024.
Whatever your goals, the sooner you get in touch with us to arrange a free initial consultation, the sooner you can begin to implement whatever you and our advisors agree will get you closer to them.