Flooring firm faces closure
Published: 15 December, 2011
TYNE & WEAR: Administrators from Baker Tilly Restructuring and Recovery are aiming to complete the outstanding contracts of a supplier of high quality flooring and fitting services following its appointment last week.
Mark Ranson and Phil Pierce, who were appointed as joint administrators of New City Flooring, are now working to preserve work in progress at the company and recoup debtor balances, which they expect to be concluded prior to Christmas.
New City Flooring was established in Sunderland in 1988 to supply and fit high quality flooring to the domestic market in the North East of England, with the company quickly expanding into the commercial market.
More recently, based in Houghton-le-Spring, the company operated across the UK and had clients including Barclays Bank, Lloyds TSB and Monsoon.
The company had suffered from reduced gross margins over a sustained period of time which caused irreparable trading losses.
Mark Ranson, joint administrator, said: "The issues faced by New City Flooring were further exasperated by the general economic climate and increasing competition and are unfortunately symptomatic of the pressures that businesses within this sector continue to experience."
Twenty-two full and part time staff, along with 16 sub-contractors, were employed by the company. All but eight staff were made redundant on Wednesday 23 November. Remaining staff will be retained by administrator while the final works on outstanding contracts are completed.