Administrators say move rescues jobs and keeps value at Beck Interiors which was hit by ‘liquidity issues because of ongoing customer dispute’
Part of fit-out contractor Beck Interiors has been saved under a pre-pack deal with other parts of the business up for sale, administrators have confirmed.
Begbies Traynor was appointed administrator to the 30-year-old firm last Tuesday – the same day Beck filed a notice of intent to appoint an administrator after weeks of rumours it was in financial trouble which administrators said was in part down to “liquidity issues relating to an ongoing customer dispute”.
In a statement, Begbies Traynor said: “On 23 July, Stephen Katz, David Rubin and David Birne of Begbies Traynor were appointed as joint administrators to Beck Interiors Limited.
“In June, the directors of [Beck] instructed advisers to secure the necessary investment in the business following liquidity issues relating to an ongoing customer dispute, supply chain failures and increased costs on current contracts.
“Unfortunately, the process was unsuccessful, meaning that the company was no longer in a position to continue to trade as a going concern.”
The statement added: “Following the appointment, the joint administrators acted swiftly to secure a pre-packaged sale of part of the business, including a major ongoing contract, which has resulted in the preservation of jobs and the retention of value within the company.
“The joint administrators are currently evaluating offers for the remaining parts of the business with the objective of securing further jobs and realising value for creditors.”
Beck started in 1994 as a joinery firm and specialises in high-end work. It is based in Chessington, Surrey, having first set up in Guildford.
In its last set of results, signed off last September, Beck Interiors more than doubled pre-tax profit to £7.2m in the year to December 2022 on turnover up 62% to £139m. It had a cash balance of close to £20m and said that its future turnover was expected to be around £150m. According to its last set of accounts, the firm employed 256 people.
Its jobs have included the Cadogan hotel in Chelsea, the National Museum of Scotland and the Hippodrome casino in London’s West End.
It has been working on a scheme at the Whiteleys redevelopment in west London for Finchatton to carry out work at the UK’s first Six Senses hotel – a luxury resort brand set up in Thailand 30 years ago.
Beck’s decision to file a notice of intent to appoint administrators last week followed a winding-up petition filed by a multinational which said it was owed close to £146,000.
Mitsubishi Electric filed the High Court notice in June for the sum, which related to invoices dated on 21 May this year.
Four other firms were listed as supporting creditors to Mitsubishi’s petition and include an electrical contractor and a heating and ventilating company.
The winding-up hearing was due to be heard yesterday (31 July) “or as soon thereafter” but this was superseded by Beck’s application to appoint an administrator.
No comments yet