Administrators fail to save UK`s Connolly Leather
Attempts to sell the world famous automotive leather producer, Connolly Leather, as a going concern appear to have failed.
Production at both the company’s Ashford and Northampton plants has now ceased and the administrators are in the process of selling off the company’s assets and machinery.
The company called in the receivers, KPMG, in mid-April after running into difficulties with its US operation, which was itself wound down at the end of November. Also cited for the company’s troubles were the cattle disease-induced price rises of last year, tightening margins in the automotive sector and the economic fall out from September 11.
Speaking to leatherbiz.com in April, Joseph Connolly said selling the leather business as a going concern was a key priority and that he was hopeful a buyer could be found. (See leatherbiz.com story: ‘Connolly Leather calls in the receivers’ – April 15). Talks were subsequently held with the US automotive leather specialist Seton, and it is understood that other prospective buyers viewed the company’s operations. The business was advertised for sale in the Financial Times newspaper on April 23 and details sent to 70 interested parties.
All this now appears to have come to nothing however. It is understood that a creditors’ meeting has been arranged for next Friday and that the leather business’s financial debts, excluding creditors, total around £15 million ($23 million).
