SCOTT-MONCRIEFF administrators have been called to Christian books distributor Trust Media Distribution.
Managing partner Stewart MacDonald (pictured) and Pamela Coyne, of Scott-Moncrieff, have been appointed administrators for the Carlisle-based business, which distributes Christian books, Bibles, DVDs, cards and gifts.
A spokeswoman for the administrators told Accountancy Age that “staff numbers in excess of 30 will reduce to ten”, with immediate effect.
The company restructured its supply chain for the wholesale element of the business in recent months, to reduce the “turnover to sustainable levels,” according to a statement from the directors of the business.
“These restructuring decisions were outwith our control and resulted from major consolidation within our US wholesale supplier base and a decision to bring distribution and wholesale “in house” within existing corporate infrastructure in the UK by one of our partners. This ultimately reduced the potential revenues of the company by one third.”
The structural changes compounded by a contraction of the industry left the company, with the sale of its infrastructure and cost base, vulnerable to liquidity issues.
“Whilst the development of our card and gift and distribution functions was encouraging it could not (in the time required) replace the rapidly declining wholesale revenue streams and we therefore began exploring alternative restructuring options at the close of 2013,” the statement added.
Stewart MacDonald, partner at Scott-Moncrieff said the administrators would work with the directors, who have personally invested money in the business, to explore future trading options.
“In the meantime, the business will continue to operate in a reduced capacity to facilitate the distribution of certain product lines,” he added.
Mark McMullen joins the private client services team from Smith & Williamson
Three new partners and seven business restructuring advisers have been appointed to the new Preston office
Merger between Clear & Lane Chartered Accountants and Magma Chartered Accountants was finalised on 3 February
BDO has taken its new partner intake to 23 during the first half of its financial year, including the appointment of five partners in five weeks