WR Refrigeration Limited, a Leicester-based fridge repair and servicing firm, has entered administration, putting 600 jobs at risk.
The firm, despite occupying a “market leading position” according to administrators Eddie Williams and Rob Hunt of PwC, experienced “difficult trading conditions in recent months” and now faces “the real risk of imminent closure” following a winding-up petition issued by HM Revenue & Customs (HMRC).
Williams and Hunt were appointed as joint administrators to WR Refrigeration on 22 October after the company failed to secure needed funding.
Williams, director at PwC, said: “Over the last few weeks the directors, funders and other key stakeholders have been in extensive dialogue with regards to securing additional financial support for the businesses, particularly in light of the winding up petition.
“Unfortunately, these discussions have not been successful and have led to our appointment as administrators.”
The company, after experiencing financial difficulties, applied for further funding. This 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.
Continuing financial losses and associated cash pressures, however, led HMRC to issue a winding up petition against the company.
Williams said: “Our immediate priority is to engage with employees, key customers and suppliers and to rapidly review the company’s financial position and its underlying profitability.”
“However, unfortunately, the level of losses and funding requirements mean that the business may not be able to continue to trade and faces the real risk of imminent closure.”
The administrators have confirmed that employees of WR Refrigerators will receive pay for work done prior to administration, as well as for ongoing wages until further notice.
WR Refrigerators employs 296 staff in Leicester and 59 in East Kilbride. The firm also has sites in Ipswich, Weston Super Mare, Dartford, Leeds, Spalding, Cardiff, Swansea and Belfast.