Over the last few years Richards, which supplies carpet flooring to wholesalers, retailers, and housebuilders, ‘suffered from fierce competition in key markets, particularly from overseas suppliers.’ It has also seen a slowdown in manufacturing and the winding up of its pension scheme.
Furthermore, the company was unable to get the necessary planning permission to relocate its Bradford headquarters to a more suitable location in Aberdeen.
Richards’ shares were suspended at the London Stock Exchange on 29 January and its directors, including finance chief Murdo MacDonald, resigned.
KPMG corporate recovery partners Blair Nimmo and Neil Armour were appointed receivers to the textile manufacturer and are continuing to trade the business as a going concern whilst seeking a buyer.
Nimmo said: ‘Despite the considerable efforts of the management of Richards plc it is unfortunate that a company which has a first class reputation for the calibre of its product and service and a high level of client goodwill has been affected by factors largely out of its its control.
‘We are very hopeful that there will be interested in the business and assets.’
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