AN historic furniture firm which collapsed earlier this year would have made a loss of £1million if it had continued trading, administrators have revealed.
HJ Berry and Sons had been making a loss for the past 10 years, according to a report published by Manchester-based administrators CLB Coopers.
The 170-year-old Chipping firm, which made tables and chairs, went into administration in February making 85 people redundant at its Kirk Mills, Malt Kiln Brow, base.
Administrators were first called in January this year as a last ditch attempt to save the company. But the report says: “The company was suffering severe cash-flow difficulties and was under pressure from its creditors.”
The report also revealed that the losses for 2008 were in excess of £600,000 and the estimated losses for last year were £900,000.
The company had a £5million black hole in its pension fund, owed Lloyds TSB £470,000 and around £270,000 to HM Revenue and Customs.
The report says: “With mounting losses, and no funding available it was not possible to attempt to restructure the company and there was no alternative to the directors other than formal insolvency.”
In order to start paying its debts the company was also forced to sell seven cottages in the Ribble Valley village.
Berry’s still owns a substantial amount of property in and around the village, including its forming trading premises, Kirk House, Malt Kiln House, residential properties in The Grove and approximately 20 acres of land including the village cricket pitch and an area of woodland.
Property specialist, Savills, has been drafted in to value all the company's property.
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