TOP 50 FIRM Carter Backer Winter (CBW) has been appointed as liquidator to Alton-based PVCu windows manufacturer and installation company Dorwin Limited.
John Dickinson, partner at CBW, was appointed joint liquidator of the company, together with CBW director James Snowdon on 21 August.
Dorwin entered liquidation after failling to gain the support of its major customers for a CVA (Company Voluntary Arrangement) process which could have ensured its survival, CBW said.
The company, which had a turnover of £8.9m, ceased trading on 28 July with the loss of 73 jobs.
Dickinson said: “Dorwin’s problems culminated in 2015 as the impact of storms to the supply of a critical product from a sole supplier in 2013 snowballed.
“The slow progression of projects, together with increasingly long contractor payment terms and reduced levels of stock, put a squeeze on cash flow despite a strong order book.”
On 2 July, the company embarked upon a CVA but was unable to meet its obligations and ceased trading.
The combination of a number of factors – as a delay to the petition was dismissed by the Court on 16 July and restrictions were imposed by Natwest on banking facilities during this period, which prevented payments to suppliers or wages – resulted in a “fatal loss of confidence”, said Dickinson.
Orders and potential sales valued at £1.8m, which had been included in the CVA cashflow forecasts, were now lost. Prior to CVA approval, Dorwin’s tender receipts were about £2.8m. Since the CVA started, these receipts have totalled £96,000.
“When companies face pressure from creditors, in particular where it gets to the point of a winding-up petition, they must act quickly. As can be seen, the repercussions can be fatal. In this case, despite a workable and practical CVA, the damage caused by the freezing of the bank account and a period without trading was irrecoverable. If the company had acted earlier, there is every likelihood that it could still be trading today,” said Dickinson.
The company’s value to creditors is £2.9m.
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