Collapsed Telford CD manufacturer owed £1.5 million
A CD manufacturer that collapsed into liquidation did so while owing around £1.5 million to a string of creditors, it has been revealed.
Staff from Sound Performance Manufacturing on Telford's Halesfield Industrial Estate were sent home shortly before Christmas as the firm slid towards liquidation.
This week, it was confirmed that specialists from accountants BDO have been appointed to handle the liquidation of the company, which made discs for customers including the X Factor.
Now, official documents have revealed that the company owed £1.5m at the time of its collapse.
But with the business's assets expected to realise just over £60,000, and only £553 left in the bank, few creditors can expect to see their money returned after the liquidation.
Staff of the company are due around £305,000 through a combination of redundancy pay and in lieu of their notice period.
But at the time of the company's collapse, according to one worker who did not wish to be named, workers were told they would need to reclaim most of their cash through the government's redundancy payments scheme.
In total the company was left with around 100 creditors, including German chemicals giant Bayer, which was owed £141,392, photography and imaging company Fujifilm, which has made a claim for £23,836, and HM Revenue and Customs, which was owed almost £40,000.
A string of local companies in Shropshire have also submitted claims, ranging from a blank CD supplier which was owed more than £25,000, to a taxi company which was due £133.20.
The company recorded losses of more than £400,000 in its last full year of trading. A meeting has already been held to confirm the winding up for the company.
In a letter to staff last month, director Chris Marksberry, said: "The company, due to its financial position, is unable to continue operations and your employment will cease.
"This is due to a decline in business which has resulted in the company having to cease trading."
The company had been headquartered in Greenwich, and another company – Sound Performance Ltd – continues to trade in the capital.
Mr Marksberry has so far been unavailable for comment.
