Administrators of Capricorn Timber are looking for buyers for the company’s stock of cladding timbers worth more than £1m.
Dilip Dattani of Tenon Recovery told TTJ that only a small amount of the stock of Uttoxeter-based Capricorn, which ran into financial difficulties shortly before Christmas, had so far been sold. Species include Douglas fir, western red cedar and modified product Thermowood.
An auction of Capricorn’s assets, including timber and machinery, is to be held by Sanderson Weatherall.
Mr Dattani said the reasons for Capricorn falling into administration can be traced to its opening in 2007 of a new 16-acre £3.25m 187,500ft² site near Uttoxeter – three times bigger than its former premises.
“Capricorn borrowed heavily having acquired a large freehold property on a fixed loan,” added Mr Dattani. “The issue which finally caused its insolvency was attributed to the credit crunch in the construction industry.”
Last week Capricorn managing director Roger Arveschoug told TTJ that the company’s bank had not been willing to provide the firm with credit because of a sales downturn.
In 2007, Mr Arveschoug had said the move to new premises was the culmination of 14 years of growth and was intended to capitalise on an unprecedented boom time for the timber trade.
Several staff remain at Capricorn while buyers are sought for the assets.
