Sarah Bell and Keith Marshall of Duff & Phelps have been appointed as joint administrators of Grantham-based ATS. Duff & Phelps explained that ATS had experienced a difficult trading period which led to significant losses being recorded at the end of 2014.
“Solvent restructuring options were investigated, however, the losses incurred and level of creditor arrears were such that a formal insolvency procedure was required to preserve the value of the remaining assets,” said Duff & Phelps in a statement.
“Despite best efforts to find a prospective purchaser for the business, no offers were forthcoming and trading operations were ultimately ceased on 23 March 2015. The majority of staff were made redundant prior to the appointment of administrators.”
Sewstern-based ATS acquired the name and assets of John Boddy Timber in 2013 after securing a £1.25m bank funding package. The move, ATS managing director Andy Lodowski said, doubled the company’s turnover. Mr Lodowski described it as a “bold move by a growing company which was bucking the trend of diminishing UK hardwood sawmilling capacity”.
ATS was due to move the John Boddy business from its Boroughbridge site to a new purpose-built location in Brompton on Swale early this year.
Prior to a period of difficult tradin
g towards the end of 2014, ATS had been a profitable company, with a turnover of £4.4m in the year to June 30 2013, reduced from £5m in 2012. In a message posted on ATS’ Twitter acount, the company said: “We would like to say a big thank you to all our customers since 1987, it’s been a great journey. Unlike the movies there is no happy ending.”
