17.03.2011

South West Crane Hire in (and out) of administration

Exeter, UK-based South West Crane Hire has entered into administration and yet a company continues to trade under the same name.

The company entered administration appointing David Kirk and Timothy Close of Exeter-based Kirk Hills Insolvency on 1st March 2011 with notices issued last week. At that time it is believed to have a fleet of 21 cranes and associated equipment – its largest a Terex AC120. The company claimed to have six depots covering Cornwall, Devon and Somerset with depots in Bristol and Plymouth, Exeter (head office), Yeovil, Barnstable and Taunton.

South West Crane Hire has been trading for more than 35 years (being incorporated on 2nd February 1986) its current directors are Michael Jeffrey and Maryluce Jeffrey. The pair also set up another company - South West Crane Hire (2010) - last May.

In February this year a company looking very much like South West Cranes was advertised by property and equipment consultants, valuers and auctioneers Edward Symmons as being up for sale. Edward Symmons has confirmed that there was a lot of interest in the company and its assets, and that all leads were passed onto the insolvency company.

Details of who purchased the ‘business’ is currently unavailable but both Michael and Maryluce Jeffrey both gave notice Pursuant to Rule 4.228 of the Insolvency Rules 1986, that it was their intention to carry on with all or a substantial part of the business of the insolvent company under the names South West Crane Hire and South West Crane Hire (2010) Limited.

Vertikal.net has made numerous attempts to speak with both South West Crane Hire and Kirk Hills Insolvency, but neither has been willing to cooperate. It would appear that the company continues to trade as it did before entering administration. The company reported a loss of more than £500,000 during the year ending 31st March 2010 following a slightly larger loss in the year prior.

Vertikal Comment

We were alerted to a possible restructuring of South West Crane Hire in early February by a number of readers. Since we received news of the official appointment of an administrator we have tried to provide our readers with some clarification but apart from stating that South West Crane Hire is in administration and that South West Crane Hire (2010) is not and that the business continues to trade we have been unable to confirm very little.

It is a most unusual administration in that it does not appear to be a voluntary -solvent winding up of a business in favour of a new corporate structure and yet neither does it appear to be one forced by a large number of hostile creditors?

It is also very odd in that the administrator refuses to discuss anything about the case. Perhaps all will become clear in the future?