BDO in at M&S shoemaker
Company calls in administrators after retailer puts the boot into orders
Lambert Howarth has gone into administration and axed almost half its staff
after its largest customer Marks & Spencer said it would not be placing any
more orders.
The shoemaker, which was reliant upon M&S for the majority of its
contracts, has appointed BDO Stoy Hayward partners David Gilbert, Mark Shaw and
Dermot Power as administrators, who have so far axed 74 out of 150 jobs.
In
a statement, Lambert Howarth, which has worked with M&S for 27 years,
said: ‘The company received notification from its largest customer that it was
its intention not to place any further orders with Lambert Howarth. Having
received clarification on certain outstanding issues from its major customer and
having considered all other possible courses of action, the board has now
concluded that it would be in the best interests of the creditors of the company
for an administrator to be appointed.’
The company added that as a result of the uncertainty over future levels of
business and the cancellation of proposed fundraising exercise, it could not
publish its annual report and accounts for the year ended 31 December 2006.