Andrew Stoneman and Ben Wiles, both of the Global Restructuring Advisory practice at financial advisory and investment banking firm, Duff & Phelps, have been appointed joint administrators of Avocet Hardware Limited.
The company was established in 1978 and operates through three UK divisions: Builders Hardware, which supplies fixings, fasteners and general ironmongery to the UK DIY retail sector; a Door & Window Hardware division, manufacturing door and window hardware and a High Security Lock division, established in 2010 to market an ‘innovative’ high security door lock.
Employing a total of 150 people, Avocet operates out of a freehold property in Brighouse, West Yorkshire, which comprises of a 90,000ft2 warehouse, a five story mill and an 11,000ft2 reception/showroom. The company was purchased by the current management team in a private equity backed management buyout in November 2007.
TOUGH TRADING CONDITIONS
Andrew Stoneman, joint administrator, Duff & Phelps, stated: “The UK hardware and fixing market is estimated to be worth some £220m per annum. In December 2011, the company sold its loss making Chinese factory, which manufactured product 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. This is a fantastic opportunity and anyone who is interested in the business should contact us immediately for further information. We are actively trying to identify a buyer and to rescue the jobs of the employees,” he concluded.
Ian Jones, director, Avocet, added: “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.”