ERJ staff report (PRW)
Corby, UK -- Codan Rubber Limited went into administration on 16 Feb. The company, which makes automotive hoses and belts was put under the management of restructuring and recovery professionals from the Milton Keynes offices of accountants and business advisers Baker Tilly. The move follows insolvency proceedings at Codan's parent group. Maflow Group of Italy.
Acting as the appointed administrators, Baker Tilly has now put the business up for sale and is convinced that its substantial market potential will be recognised, particularly by similar automotive and industrial suppliers looking to increase their critical mass and geographic foothold in the UK.
Baker Tilly restructuring and recovery partner Graham Bushby said: â€œCodan is a well-established company with a circa £3.3m annual turnover. It supplies both the automotive and industrial marketplaces from a 40,000 sq ft leasehold factory and warehouse in Corby and has a substantial customer base and forward order book.
â€œA key reason for Codan's financial failure was the insolvency of its parent company in Italy and the knock-on effect that this has had on operations in the UK. The local effects of the worldwide recession and the severe downturn of business in the automotive sector have also contributed to Codan's losses.
â€œUnfortunately, as part of the turnaround process we have had to make 15 of the circa 50 employees redundant. However, the business is still trading with the full support of its customers and workforce and we believe the company can make commercial progress under the right ownership.
Parties interested in purchasing the company should contact Graham Bushby at Baker Tilly's Milton Keynes office on +44 1908 687800.
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Press release from Codan Rubber
PRW.com (A Crain publication)