Liquidator Carter Backer Winter has been appointed to Hampshire-based UPVC windows manufacturer Dorwin Limited. After being issued with a winding up petition the company found it impossible to gain the backing of it’s primary customer base for a CVA process which could have safeguarded it’s survival.
Dorwin Ltd Wound Up by Companies Court
The company which has a multi-million pound annual turnover shut it’s doors with the reported loss of 73 jobs. £1.8m worth of orders and predicted sales, which had been included in the CVA cash flow forecast, have been lost after the winding up petition was issued. Dorwin’s tender receipts totalled £2.8m before the CVA approval. These receipts totalled £96,000 since the CVA started. John Dickinson and James Snowden, partner and director respectively at CBW, were appointed joint liquidators of the company.
John Dickinson had this to say:
“Dorwin’s problems culminated in 2015 as the impact of storms to the supply of a critical product from a sole supplier in 2013 snowballed. The slow progression of projects, together with increasingly long contractor payment terms and reduced levels of stock, put a squeeze on cash flow despite a strong order book.”
Mr Dickinson went on to say that:
“When companies face pressure from creditors, in particular where it gets to the point of a winding up petition, they must act quickly. As can be seen, the repercussions can be fatal. In this case, despite a workable and practical CVA, the damage caused by the freezing of the bank account and a period without trading was irrecoverable.”
Winding-up Petition Solicitors
If you have received a winding up petition our legal experts are able to provide legal advice and representation. Our team of solicitors and barristers can obtain a court adjournment; CVA’s or successfully challenge the validity of the winding up petition to ensure that the petition is dismissed, often without public advertisement.