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Black Country Manufacturers To Be Sold After Administration

Two Black Country manufacturing businesses are to be put up for sale after entering administration.

Julie Palmer & Simon Campbell, of business rescue and recovery specialists Begbies Traynor, were appointed joint administrators of STS Switchgear Limited & STS Motors Limited on Wednesday, 9 September, 2015.

The firms, which employ 60 people and share premises in Cradley Heath, near Dudley, make bespoke switchgear and motors for the energy & mining sectors. Total turnover in 2014 was close to £6m.

The development follows a period of “patchy trading and cashflow pressure”.

The administrators are currently trading both businesses, which have previously been subject to a management buyout, with a view to selling them as a going concern. No redundancies have been made.

Julie Palmer commented: “Given the skills of the workforces and the quality of the customer bases, I believe that these businesses are very saleable and have a bright future once released from the burden of historic debt from funding the management buyout. This is why I am continuing to trade them as going concerns.

“Discussions are already underway with a number of interested parties with a view to achieving a sale and preserving the businesses and 60 jobs along with them. I am pleased to say there is already a high level of interest.”

Julie Palmer

About the author

Julie Palmer

Regional Managing Partner

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Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor.

Julie is a member of the Insolvency Practitioners Association and the None Administrative Receivers Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.

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Insolvency Practitioners Association Institute of Chartered Accountants in England and Wales R3: Association of Business Recovery Professionals ICAEW Business Advice Service Turnaround Management Association ACCA (the Association of Chartered Certified Accountants) ICAS | The Institute of Chartered Accountants of Scotland