07.08.2012
Leach Lewis Plant enters administration
UK equipment distributor Leach Lewis Plant, the recently appointed Dingli distributor which also Doosan and Manitou in some parts of the UK has appointed an administrator.
The administrator is expected to take control of the business later today and will issue a statement once he has had time to assess the situation.
In the meantime the company, which dates back to 1967, has said that it would prefer not to comment
Leach Lewis Plant Ltd is the largest part of Leach Lewis Ltd and in its latest accounts had revenues of £32.7 million after a steep slump in 2009/10. The company also posted a pre-tax profit of £18,000 after two years of losses.
Leach Lewis Ltd is not implicated in the administration although it is the parent company. Other Leach Lewis group companies are not directly affected by this move.
UPDATE
Ernst & Young has now been appointed as administrator it issued the following statement
"Angela Swarbrick and Maurice Moses from Ernst & Young were appointed as Joint Administrators. LLPL is continuing to trade with a view to selling the business as a going concern."
limited credit
he he!! you couldn't make this stuff up if you tried
but knowing, and being told about, the MD and the senior management it's just another day in the office at leach lewis. one of the directors resigned last novemeber (according to companycheck.co.uk) maybe that's when it all kicked off - sounds like it would have been best if they all graciously resigned
their credit was always poor - tried buying a machine from them and there was delay after delay, even though the supplier told me they had stock
problem for the business now is that existing suppliers have lost out so do they continue to supply stock and allow leach lewis to be their distributor and do new suppliers work with a company with what has just occured.
think it all depends on who finally takes control and what reputation they have witihn plant sales.
a shame for the staff - wish them all the best
Anon
So, the full picture starts to emerge and it isnt pretty. It would seem that while the MD of LLP was working hard, pre Administration, with his team to mount an MBO and take over the company as a whole, at least two members of his team were secretly mounting their own bid for just a part of the company!!
Was the renegade bid made before the Administration period started? stamping on the MBO for the total company?
The same Administrator seems to be working on other parts of the group! So how much did they know ahead of LLP going into adminsitration? I dont know!!
It looks like LLP creditors never stood a chance!! If so it also means that LLP staff never stood a chance!!
Warning to anyone considering giving any of this lot credit!!
Only my opinions though!!
EDITED FOR BORDELINE RULE BREAKING
IP434
what a pity the creditors weren't relatives.
Anon
And I think you will find that the "Gentleman" has sacrificed jobs and backed the bid for a small part of the company!! in the name of the family!!
EDITED FOR RULE BREAKING
IP434
The "gentleman" referred to by Anon, instead of crawling underneath a rock and hiding, whilst the workforce waited with baited breath about the company being sold as a going concern, and hopefully saving their jobs. Attended an announcement today to the workforce, announcing that he has backed a bid for part of the business with four of his "trusted" colleagues!
So this "gentleman" has kicked them in the teeth twice now! What a pity integrity doesn't pay the bills.
IP434
Limited Credit - 2 words - Balance Sheet.
There are many parties that are interested in the company, so let us not scare employees by talk of depots closing. Where there is life there is hope!
Good luck to all!
limited credit
Plant division not making money!! need to look at the creative accounting within the group.
Is LL Plant bled dry, pays exorbitant fees to LLL
instead of paying creditors. 1.5 mil you say - who exactly pays who for what?
was this a long term plan???????, creating a tracks and heavy offshoot.
if service and parts are part of plant group then no real reason to keep maidstone and oxford depots open anymore. also no need for waltham cross depot. finance building can accomodiate the few admin based people left.
heavy division in peterborough expands if business is there
just my thoughts guys
IP434
July's 1.5m LLL management charges were a bit steep!
Anon
I am no accountant, but a quick look at all parts of the LLL group shows what a state it is in. Therefore the comment previously from "CASH" suggesting that LLL is in "Fine Fettle" is somewhat worrying, especially if that person is in their accounts department. Possibly shows why it is in the state it is in. As stated before a good offer was made to purchase LLP, but the Chairman turned it down. This is a man that would like people to think he is gentry. But he didnt even have the courtesy to turn up in person when the administration was announced to people who in many cases have worked for him all of their adult life. No Gentleman.
IP434
Freudian slip, I meant avoidable. Awight!
IP434
This is really sad, and completely unavoidable, the management of Plant made an offer to buy the company last week, and the Chairman turned it down.
The Chairman then took the advice of a completely detached Michael Barrymore looki-likey to put the business into administration, in favour of Motivair, the groups other company, where all the groups money has gone to over the last three years.
The Chairman is supposed to be a man of high morale values, but has sent the company of 75 years down the river. tut tut.
Here is wishing the management team and all of those poor employees the best of luck!
limited credit
cash - fine fettle!!!
it must have an impact. one company is owned by the other, if one fails then why will the other not be affected. they split from bomag and atlas compressors, lost some of kubota area, pop-up and snorkel failed to generate sufficient sales.
you always need to ask if management are to blame when something like this happens to a part of a business.
if leach lewis plant pay leach lewis finance for services then at what price?
if leach lewis heavy recently created and are going well then why not mix the plant/heavy machinery together.
not sure how it all works with parts of a business going under but am sure E&Y know their stuff.
vertikal editor
If the owner of Leach Lewis is in fine fettle then this has serious moral implications. However the owner of Leach Lewis Plant is Leach Lewis Ltd. This company according to Companies House made a pre-tax loss in the year to March 2011 of £2.487 million, it has a negative tangible net worth and negative working capital. In fine fettle? Not by my measure or any that I know of.
So I fail to see how we are miss-informed and we are most definitely not being malicious. I am exceptionally sad to see such a well-known name go through this and our thoughts are with both the owners, managers and all the staff as well as with the independent creditors who have been caught out by this.
Cash
The suggestion in the news story that other companies within Leach Lewis Ltd are impacted by the events at Leach Lewis plant is entirely untrue. The rest of the LLL group are in fine fettle. Whoever wrote this piece is either mis-informed or malicious.