ADMINISTRATORS have been appointed to ailing tea manufacturer Lancashire Tea.
The Newton-le-Willows firm’s difficulties were revealed two weeks ago when directors hoped to pull together a rescue plan.
However Chris Ratten and Carl Jackson of insolvency specialists Tenon Recovery are now in charge of the company.
Mr Ratten said: “Tenon Recovery is exploring options to sell the business as a going concern, and is in negotiations with a number of interested parties. Discussions remain at an early stage at present, but we are confident that a suitable deal can be secured.”
Lancashire Tea has been fighting against the effects of the recession and record high tea prices. The firm, which employs 40 people, has been searching for investment but, despite being in talks with a potential saviour for more than two months, has been unable to tie up a deal.
Its cashflow crisis was the result of Royal Bank of Scotland pulling its factoring facility in February which meant the company received no money from February to June.
A cash injection by its co-founders, Paul Needham and Lynn Hitchen, in the summer failed to see the company through its problems, which in the short-term centre around payments owed to an asset finance firm for a key piece of machinery.
The company has claimed that, despite the cashflow issues, sales are strong and the company is on course to record its first operating profit this year.
Earlier this month the company changed its name from Lancashire Tea Company Limited to LT Collections Limited, while a new company called Lancashire Tea Limited was created on behalf of the directors.
