Shrewsbury glass company that suddenly collapsed agrees to go into liquidation
A family owned glass company that suddenly collapsed leaving customers thousands of pounds out of pocket has decided to go into voluntary liquidation.
Directors of Heritage Glass (Shrewsbury) held a board meeting on Tuesday and decided to place the company into a creditors' voluntary liquidation with a financial black hole estimated to be about £800,000.
The company, based at Racecourse Crescent, Monkmoor, had been trading for 23 years. It has identified a Shropshire-based insolvency practitioner to handle the liquidation and to secure the company's assets. The appointment of Nick West, of West Advisory, in Telford, is subject to confirmation by creditors.
Mr West said retail customers are classified as "unsecured creditors" and they are unlikely to get much if anything back.
He said: "Regrettably, the company’s asset position is unlikely to result in a distribution becoming available to unsecured creditors; however, this is subject to open market realisations of the company assets - which have been safeguarded - and the liquidator investigations.
"In the interim, retail customers are urged to contact their bank or credit card provider to review options in recovering their deposits. There is also a deposit protection scheme in place, details of which have been circulated to creditors."
Details of the liquidation are being sent to all known creditors, including retail customers and trade customers.
Mr West added: "The duly appointed liquidator has a statutory duty to consider the conduct of directors.
"The liquidator also has a duty to consider whether any civil proceedings should be taken against the directors or others for the recovery of, or contributions to, the company's assets.
"It is too early to comment on what may be the outcome of any investigations and what recoveries may be made.
"There are no indications of any criminal behaviour at this stage but we have a duty to investigate and will be inviting information from creditors in due course."
Mr West said at the same time as the liquidator's investigations take place the Insolvency Service will consider the conduct of the officers and, if thought to be in the public interest, may take disqualification action against them.
Mr West said that he had no involvement with the company until after it ceased trade and was unable to comment on events leading up to the sudden cessation of business on December 14.
Mr West said that sadly Heritage Glass is not alone in being in a difficult financial position.
"In general, we are experiencing a increasing number of insolvency enquiries, both personal and corporate.
"The number of registered corporate insolvencies in December 2022 was 1,964: 76 per cent higher than the number registered three years previously - pre-pandemic; 1,119 in December 2019.
"Businesses are under great stress and are facing some major challenges including rising interest rates, high inflation and increasing raw materials."
He advised anyone facing financial difficulties should seek advice early to review other recovery options and avoid a terminal insolvency procedures like a liquidation.
"My advice to companies is to seek advice early, there may be other recovery options. I would much rather help a business survive than be the liquidator," he said.
