A fridge repair and servicing firm, WR Refrigeration Limited, which has it’s headquarters in Leicester has gone into administration after having been served with a winding up petition by HM Revenue and Customs (“HMRC”) over unpaid taxes.
Cash-Flow Problems: Administration and Potential Job Cuts
According to the administrators, PricewaterhouseCoopers, WR Refrigeration’s Limited turnover in the year to 31 December 2012 was £58 million with the business operating from five regional depots with approximately 600 employees and a number of contractors.
Around 296 jobs are under threat in the Leicester branch and 59 in East Kilbride. The firm also has sites in Ipswich, Dartford, Leeds, Cardiff, Swansea and Belfast. However, we understand that there are no plans for redundancies and employees would be paid on an on-going basis.
The administrators said:
“Despite its market leading position, WR Refrigeration Limited has experienced difficult trading conditions in recent months. The funding, in addition to the significant investment already provided, was made available by the existing lenders and owners to help facilitate a turnaround of the business.”
HMRC’s Winding Up Petition
It is understood that existing lenders and owners made significant investment in an attempt to turn business fortunes round, but further losses and cash pressures led to a winding up petition. Prior to the HMRC winding up petition, the firm was unable to secure extra funding from external creditors which means that the business now faces the real risk of imminent closure.
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