Baldwins sends Phillips to Chapter 11
Baldwins has filed its US subsidiaries under Chapter 11 of the US Bankruptcy Code.
Baldwins Industrial Services Inc (trading as Phillips Crane & Rigging) and Baldwins Leasing LP have reported unacceptable business results for some time, and the decision to file for bankruptcy finally went ahead on August 26, exactly a month after the company publicised its disappointing preliminary results. Baldwins had cut down its US depots to two main terminals, Houston and Dallas and considerably pared down operations over the last six months to attempt to get profits up, but to no avail. The company blamed the US market and some technical problems with new cranes.
The subsidiaries will have the opportunity, whilst in Chapter 11, to find a buyer or reorganise and get rid of debts. During and after this time, Baldwins has stated that UK operations will be unaffected and stressed that, in the UK, the company is still highly profitable.