Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Hardware and ironmongery manufacturer Avocet Hardware has gone into administration today (January 23).
Andrew Stoneman and Ben Wiles, of financial advisory and investment banking firm Duff & Phelps, were appointed Joint Administrators.
Avocet, which was purchased by the current management team in a private equity backed management buyout in November 2007, operates through three UK divisions: Builders Hardware, a Door & Window Hardware division and a High Security Lock division. Avocet employs a total of 150 people.
Stoneman said that in December 2011, Avocet sold its loss making Chinese factory, which made products for the Door & Window hardware division. “The financial performance of the company in recent years has been adversely impacted by losses from the Chinese operation and by the insolvency of a major customer.
“Discussions are on going with a number of different parties who wish to acquire all or parts of the business. We are actively trying to identify a buyer and to rescue the jobs of the employees, ” he concluded.”
Avocet director Ian Jones said: “This has been a tough trading period as we have experienced a major contraction in the UK DIY market compounded by the insolvency of one of our largest clients. We are hopeful a buyer will be sought and we are working closely with Duff & Phelps to ensure we reach a satisfactory outcome for all concerned.”
Avocet operates out of a freehold property in Brighouse in West Yorkshire, which comprises of a 90,000 square foot warehouse, a 33,000 square five story mill and an 11,000 square foot reception/showroom.
