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Longmead's failure to plug losses sees administrators called in

Published: 12 September 2008
Bathroom accessories supplier appoints Pricewaterhouse Coopers to sell group as a going concern.
Longmead Group, a supplier of bathroom accessories, has called in the administrators.

Directors decided the company could no longer trade after struggling to secure funding following months battling debts.

According to The Guardian, family-controlled Longmead collapsed with debts of £800,000 owed to HSBC, with other creditors owed £500,000.
'At its 7p suspension price the company was valued at just £390,000', the newspaper added.

The loss of a major customer, believed to be Homebase, compounded months of poor trading figures.

In a July half-year statement Longmead talked of 'pessimism' in the industry, and a 'significant decline in sales'.

It said of future prospects: "There is a lack of market confidence among our customers which is resulting in a reduction in their stocks and we see very little prospect of an improvement over the next few months."

On September 3rd Longmead requested that its shares be suspended from trading on AIM as difficult trading conditions had caused severe working capital constraints on the company.

The administrators are Pricewaterhouse Coopers (PWC) in Bristol.

A spokesperson for PWC said there is a 'long list' of potential buyers to contact.

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