Administrators of Wadkin Group have confirmed there has been a large amount of interest in the company.
The Leicester-based company, which operates woodworking machinery manufacturing and service divisions, went into administration just days after announcing a refocusing of the company.
Philip Lyon and Russell Grove from Mazars were appointed joint administrators after Wadkin accrued significant losses, thought to be as high as £3m, mainly due to the poor performance of its manufacturing business.
Mr Lyon told TTJ that Wadkin’s directors were working on a company voluntary arrangement where they could retain control of the firm. Such a deal would need approval by creditors.
“We have had a large amount of interest from third parties in buying the group,” said Mr Lyon. “The company is in a sate of flux.”
“It’s another sad story of manufacturing in this country where we can’t compete. The cost base of manufacturing in the Far East is so much less than it is in this country.
“But the service side of the business is sound and that is the area where we have had interest from other people.”
Mr Lyon said he was certain the Wadkin name, synonymous with British woodworking machinery manufacture, would not be disappearing.
Shortly before going into administration the group said it was refocusing after closing its Wadkin Manufacturing classical machinery production business due to rising competition from cheap imported machinery. The move led to 26 jobs being cut.
At the time managing director Peter Smith said the refocusing was vital for the long-term viability of the company.
Mr Smith led a management and employee buyout of the total interests of the company in 2005.
