Southern Brick, the Abingdon-based brick factors and builders merchants currently in administration, are expected to be sold as a going concern, with an announcement likely in the next few days, buildersmerchantsjournal.net has been told.
Joint administrator Geoff Rowley said that they are currently talking to a number of interested parties and are “looking to sell the business as a going concern and would expect to receive offers within the next few days.”
The four branch business is continuing to trade and is, Rowley said, a victim of the current state of the market. The housing slump led to a drop in sales and while the directors tried to cut what overheads they could, they were unable to restructure the business sufficiently.
“To restructure a business successfully, even to make people redundant, requires a certain amount of working capital. Also, in the current market conditions, suppliers are moreorless forced to keep strict credit terms.”
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