FRP ADVISORY administrators have been called to commercial Christmas decoration company Fuzzwire.
Andrew Sheridan and Phil Pierce from FRP were appointed joint administrators to Fuzzwire. The business designs, manufacturers, and installs Christmas decoration displays at about 150 shopping centres including, Westfield, Canary Wharf, Blue Water and Lakeside.
According to the administrators the company suffered from a sharp deterioration in its financial position, in the last few weeks, which put unsustainable pressure on its cash flow. Despite efforts to attract external investment or to sell the business as a going concern, no buyer emerged, forcing the company's management to lay staff off just before Christmas.
At the time of its collapse Fuzzwire employed 65 full-time employees, 44 part-time staff, and 78 self-employed subcontractors.
However, the administrators have managed to sell all of Fuzzwire's contracts to UK-based designed and display company MK Illuminations, which is part of a larger Austrian-owned group which services 400 of the largest shopping centres across Europe.
Andrew Sheridan, FRP Advisory partner, said: "The assignment of Fuzzwire's contracts should ensure the safeguarding and sound management of the Christmas decoration schemes that are in place, and ensure there is a smooth operational framework to facilitate their seamless removal to timetable by MK Illumination in the New Year, critical for the shopping centre customers."
He added: "It goes without saying that we have huge sympathy for the former employees who have not been paid in December, particularly as we are in the run up to Christmas."
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.