Business sale to save Ipswich manufacturing institution
THE century-old Ipswich manufacturing icon Claypave is expected to be sold after creditors decided to place the struggling company into liquidation.
At a meeting of creditors this week it was resolved to place Claypave into liquidation and appoint Worrells Solvency and Forensic Accountants partner Adam Ward as liquidator.
The company was put into voluntary administration on March 21 as its financial problems started to grow.
Its supply of pavers continued to climb while the market demand dropped.
Mr Ward, who has overseen the company since March 21, closed Claypave's manufacturing department, putting up to 60 people out of work.
The retail side of the business continued to trade while Mr Ward investigated options for the company's future.
Mr Ward said the business would continue to trade during the liquidation to maximise recoveries.
He said income generated from trading the Claypave business and the sale of tangible assets or sale of the business should be enough to pay off all known debts.
Claypave opened in the 1880s as Rylance Collieries and Brickworks.
The business's current owners took over in 1985, focusing primarily on manufacturing clay pavers and establishing an export market in Japan.
Mr Ward will now concentrate on the sale.
"The directors and senior managers have ensured that all obligations with regard to statutory debts and lodgments have been paid and lodged in accordance with the relevant time frames," he said.
"The directors, general manager and internal and external accountants have continued to provide support during the trading period."
Mr Ward said his focus had been on securing and realising any company assets, securing its books and records, investigating company affairs, and trading on the business.
The company's bank, Commonwealth, holds registered mortgages and Mr Ward said it was working with him to achieve the best result for stakeholders.