England-based food and packaging manufacturer Q Cold has entered administration on 20 June 2013 following a sharp deterioration in trading conditions.
FRP Advisory partners Chris Stirland and Philip Watkins, and FRP Advisory director Nathan Jones were appointed as joint administrators.
The company can continue to trade by entering into administration, while the administrators seek a buyer for the on-going business.
FRP Advisory partner Chris Stirland said Q Cold, which specializes in suet production alongside a packaging operation, suffered from the recent termination of a key supply contract with a customer which had accounted for around half of the company’s turnover.
"The supply contract termination, together with an on-going dispute with HMRC relating to the reimbursement to the Company of overpaid VAT monies relating to that supply contract, has put a squeeze on cash flow," Stirland said.