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Bleak!
They've basically just told them it's over and give there staff a link to job centre
Https://news.sky.com/story/safestyle-around-680-workers-made-redundant-after-window-and-door-seller-falls-into-administration-12996605
Looks like game over.
My feeling is they will shut the name down and sell the assets (factory and head office) back to mitu and change the name.
If successful does that still lead to worst case scenario or can we resume trading without admin? Just being hopeful for a miracle
The administrators advised customers that orders will not be fulfilled by the company in administration. They continue to explore the possibility of selling certain business and assets to a third party.
Agree jaydee! They misled many here if those numbers are true. Staff deserve better than a blanket text message and need answers! Shareholders equally deserve better, parting with hard earned cash in good faith.
How about the fact they dismissed the staff by a text message.
No ethics, morals or courtesy to the people that have plodded along all this time and kept them afloat
That's what everyone wants. The staff want it. Took a huge successful company and crashed and burnt it to the ground.
10mil in orders!!! Perhaps we can have the bod thrown overboard and a new squad in. The current line up don’t have any skin here
Https://x.com/gmb_union/status/1718958837359632561?s=46&t=4s-AQzZhMmeWz3Ire1AEsA
Let’s see, can’t imagine anything for shareholders… let’s hope some miracle happens and we can resume trading
They've asked all staff to go on a zoom call today.
See what unfolds from this. I'll update
It’s a common misconception that any insolvent company can enter into administration – it can’t. Administration is only an option if the business is insolvent but remains viable. That is:
It’s a reasonable size
It generates a consistent level of cash-flow
It has the potential to return to profitability
Although the immediate goal of the administration process is to ensure the company’s creditors receive the best possible return, it also gives the business the chance to make changes to its core operations in a bid to return to profitability. To achieve this goal, the administrator can sell assets, reduce staff and negotiate a Company Voluntary Arrangement (CVA) to repay its debts without the threat of legal action from creditors.
If a business has no assets of value, no ongoing cash-flow and no real prospect of returning to profitability, administration would not be appropriate. In that case, the only option is to liquidate the company.
How Long Does Going into Administration Take?
The process of going into administration can take anything from just a few hours to several weeks depending on your circumstances and the size of your business. Once the process has begun, it typically lasts for 12 months, although it can be extended with agreement from the courts. The business will not usually be run by the administrator for this length of time. Typically, the administrator will only be in control of the business for a period of around six weeks.
Can a Company Still Trade When it Goes into Administration?
Yes. If the administrator decides that’s in the best interests of the creditors, then a company can continue to trade during the period of administration. This is known as a ‘trading administration’, and is often used when the administrator believes the business is still viable and its recovery is likely.
If the eventual plan is for the company to be sold as a going concern, the administrator may also allow the business to continue to trade. Trading companies typically preserve more of their value. That would increase the return for the creditors when the company is sold.
What are the Potential Outcomes of Administration?
There are three potential outcomes of administration. The administrator must achieve one of these outcomes when the period of administration comes to an end:
Rescue the company as a going concern so it can continue to trade
Achieve a better return for the creditors than if the company had been liquidated
Repay one or more secured or preferential creditors
To achieve one of these outcomes, there are a number of different steps the administrator can take. That includes:
Negotiate a Company Voluntary Arrangement (CVA) so the company can continue to trade and pay its debts over time.
Sell the business as a going concern to another company, either via a pre-pack administration or an open market sale. The business will be able to keep its clients, its workforce and order
Once a company goes into administration, it enters what is known as a ‘moratorium’. A moratorium is a legal stay that prevents creditors from taking legal action against the company. That gives the administrators the breathing space they need to implement rescue procedures or restructure the business and return the company to profitability.
The first step for the administrator is to take stock of all the company’s assets and debts so they can understand the financial position the business is in. The administrator will have a period of eight weeks to assess the situation and decide how they want to proceed.
They’ll then send out detailed proposals to all of the creditors explaining the course of action they plan to take and the anticipated outcome. The creditors will have a meeting to decide whether they approve of the administrator’s plans. If the proposals are agreed, the administrator will be able to put their plan into action.
Who can put a Company into Administration?
A company can be put into administration by its directors/owners and its secured creditors. The directors will use the administration process to try and protect the company and their position
I don’t believe for one minute interested parties then nowt on the table unless lied
Are there any examples of publicly traded co’s g filing for admin, unions/councillors getting involved and the company coming through unscathed? And more importantly shareholders…?
How in 24 hours so called interested parties (more than one), decided to withdraw their interest…when nothing has changed in this time except for 80% fall in SP. I suspect they’ve provided false RNS to the market and mislead investors about ‘interested parties’…
There wasn't a great deal of debt relatively, despite everything. The RCF alone effectively caused the administration. Net debt at year end was forecasted as £6.5m, the maximum borrowing facility was £7.5m.
Once covenants on course to be breached bank pulled support, so the only viable solution would have been an injection of up to £7.5m to clear it, plus working capital to keep things on course until turnaround.
What are your thoughts Daniel? Keen to hear how you think we have a chance yet and what the options could be for the company to save shareholders here and their employees.
Absolutely disgusting their CEO announced this via text message, that’s equivalent to being dumped via text.
https://www.examinerlive.co.uk/news/local-news/anger-safestyle-uk-workers-told-28002549.amp
Interesting to see! It is a shame the money required is pretty small, especially given there’s 600 plus jobs on the line. A few mil in the grand scheme of thing is peanuts.
If you look too the switch to a new profiler caused a one off payment of £1.7m, radio ads £1.4m and remuneration package for the former ceo was 600k. They’re £3m of costs that probably forced their hands. I’d be interested to see how much they need to stay afloat because I’d bet it isn’t significant
Could be a slim chance yet
https://www.bbc.co.uk/news/uk-england-south-yorkshire-67255380.amp
Unions and councils getting involved, won’t take much to save them.
Can’t help but think they had to go into administration to prevent breach of the debt covenants, which would’ve completely wiped them out
“At this time, the Group remains compliant with the covenants of its £7.5m borrowing facility. However, if the losses forecast for the remainder of the year materialise, this would generate a material shortfall versus the existing covenants of the RCF in November. Therefore, under the current facility terms, access to the RCF at that time could be fully restricted.  Â
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Alongside the discussions with existing shareholders and other third parties described above, the Board has had good discussions with the Group's bank, who have remained supportive, regarding renegotiating terms of the RCF in the form of a covenant waiver. This is yet to be formally agreed and is expected to be inter-conditional with the working capital injection referred to above.”
Would explain the quickness of the suspension/administration, as creditors cannot touch them during this 10 day window.
As reported in our half year trading update on 27 July, our numerous mitigation actions returned the business to profitability at the end of the first half despite reduced volumes in this more challenging market. I am pleased to confirm that we achieved our profit expectations in July and August. Pleasingly, our order intake has not fallen this far, it is currently down c.11% YoY which shows our product offering is withstanding wider market pressures better than others.
There’s certainly a solid business under there that has weathered many things over the years, hopefully the bank and councils can put a recovery plan in place and get people back to work 🙏
Hahaha and ITS got suspended and it aint coming back.So who was right about it?
I didn't encourage anyone to buy this and many times stated it was very risky and there was red flags everywhere .....BUT at such low levels IMO there was a chance at a spike.
Besides the above, a few people on an LSE board wouldn't/shouldn't listen to anyone else on here as regards actually buying or selling shares [including me] .
If people DO listen to others on LSE then you lost many people alot of money on ITS as you said it was over for them and would never spike and not to buy it......before it did 2000% at 1 point in a few days.
Haha you absolute clown!!
Now go back under your keyboard little troll
Anyway back to may weekend with the kids and wife.
Keep trolling on anonymous chat boards on a weekend in a share you never invested in!!
How very very sad