£1.7m-turnover leather goods firm falls into administration
Mon, 03 Jul 2023 | ADMINISTRATION
Roma Leather, a leather goods manufacturer based in Naseby, Northampton, has fallen into administration as a result of falling demand. The company was founded in 1981 and had turnover of around £1.7 million in 2022.
The firm, which had a team of 33 staff, manufactured leather belts and other small leather goods from its Northamptonshire factory. It worked with Italian and other European leathers, claiming to produce between 5,000 and 10,000 products every year.
The company was severely affected by falling high street and online sales, resulting in customers reducing or delaying demand for the firm’s products. Management explored options to secure Roma Leather’s future, including attempts to sell its business and assets as a going concern, however a solvent solution could not be found.
Roma Leather posted two notices of intention to appoint administrators in June, ultimately appointing RSM’s Tom Straw and Christopher Lewis as joint administrators. The business has ceased trading, with all employees made redundant prior to the appointment of the joint administrators.
Joint administrator Tom Straw commented: “Regrettably this 40-year-old company has been placed into administration despite the efforts of the management team to find a buyer for the business as a going concern. This business failure illustrates the issues facing many UK SMEs in the current challenging economic environment.”
In its accounts for 2022, Roma Leather had fixed assets valued at £177,874 and current assets worth £567,514. Its net assets were valued at £63,811.
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