History
A Sheffield manufacturing firm that collapsed into administration with the loss of nearly 80 jobs owes more than £500,000 to creditors, it has been revealed. More than 140 local and national companies are owed money in the wake of the collapse of Castmaster Roll, based at the Eagle Foundry in Attercliffe. The business went into administration in October and as no new buyer could be found, all 78 workers have lost their jobs and the firm’s assets are being sold.
The firm had reported a trading loss for three years in a row before going into administration, including a £400,000 loss for the year ending January 31, 2014. Details included in the papers of administrator KPMG show £502,353 was owed to different companies at the time of administration.
The report said delayed and non-payment of invoices had put the company under ‘significant pressure from its creditors’ in the months prior to administration. A report also reveals that between KPMG’s appointment in October and December 5, it claimed costs of more than £324,000 for handling the administration.
KPMG said it is uncertain how much money – if any – will be returned to unsecured creditors as a sale of assets is yet to be concluded. Administrators have also said they are ‘continuing to assess the causes of the company’s failure’. It comes after Sheffield MP Clive Betts called for a ‘thorough investigation’ into how Castmaster Roll failed. The Sheffield South East MP said staff had told him the company appeared to be in good shape before it went into administration. He said: “I’m calling on the administrators to undertake a thorough investigation into how a company with good order books and more orders coming through the door has sadly managed to get into such difficulties.”
The firm produced iron and steel quality rolls, discs and sleeves for the manufacturing and food processing industry. The Stevenson Road site began making gas lamps more than a century ago and became a roll maker about 95 years ago. It was known as the Davy Roll company but, after going into receivership, it was reborn as Castmaster Roll in the mid-2000s, taken over by new owner Mel Farrar.
Source:
Esoteric Eric
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