As I speculated last week, fabric has gone into administration. This is not something to panic about necessarily. When a company goes into administration, the administrators that are appointed, assess whether it can remain as a going concern and be handed back to the original company directors, whether it can be sold on as a going concern, or finally whether all assets have to be sold, creditors paid off and the company liquidated (ie no more company). I remain convinced from what I have seen that fabric can remain a going concern and become profitable once more. The losses in … Continued
Tag: administration
Following matter’s closure, rumours are abound that fabric might follow too. Here is my assessment: For the last accounts filed for the year ending 2008, they had a negative net worth of £150k, and had made a loss of approx £220k, but that was on a turn-over of £8m. Add on a loss of £180k that I read earlier for year ending 2009 (not filed at Companies House yet), this would give them a negative net worth of £330k, assuming there was no other financial input from the backers – I’m not sure how much the owners are worth, if … Continued