Hardware and plumbing wholesaler appoints insolvency specialist Wilson Fields to prepare a Company Voluntary Agreement (CVA) in a bid to appease creditors and continue trading.
A spokesperson for Wilson Fields confirmed: "We have been appointed to assist the company in its current financial situation."

Under the terms of a CVA, Wolverhampton-based RP Hardware must make a proposal to repay creditors a proportion of the money it owes.

Wilson Fields' spokesman explained that the amount, RP Hardware director Alan Woodhouse will propose to creditors is still unknown because they are "still in the very early stages of the process".

He added: "We have to collate the information. The director will then make a proposal to all creditors and they choose whether to accept. Until we've seen all the information, we can't comment further."

If the CVA is passed, RP Hardware can continue trading, with its debts resolved. If the CVA fails, Mr Woodhouse has the option of negotiating fresh terms or creditors are able to pursue repayment in the usual ways.

Wilson Fields added: "When we collate the information, we have to be impartial and do it in a way that fits both sides and is a feasible option."

The insolvency specialist expects a decision within a four-week period. "When we are appointed, there is a certain amount of urgency about it," the firm concluded.

Mr Woodhouse was unavailable for comment.