Administrators have announced the sale of an insolvent Harlow-based electrical wholesaler out of administration.
KR Electrical Wholesale Limited entered administration last month after the company amassed “substantial debts” to a number of creditors.
The company experienced a period of poor trading in Spring this year, leading it to credit cancelled jobs and stock returns. A lack of income and inability to raise additional capital meant the business had no alternative but seek liquidation in May.
One of the company’s debenture holders was made aware of the position and sought to place KR Electrical Wholesale into administration in order to protect the business and give an opportunity to restructure the company.
Simon Plant and Daniel Plant were appointed as joint administrators to the company on 2 June and have now announced a sale of the business has been completed.
Simon Plant said: “KR Electrical Wholesale Limited has suffered from a lack of cash flow, the lifeblood of any business. Once it started to experience a lack of cash running through its business, debts began to weigh more heavily and without any fresh injection of cash it was placed into administration.
“We have subsequently completed the sale of the business and assets as a going concern to a third party preserving all five jobs in the process.”