Philip Duffy said: “That probably cost £2m to £4m in cashflow. Even for a business this size, that can be catastrophic.”
He said they will trade the businesses for three or four weeks and revealed they had already received calls from interested parties.
A source close to the company told LDP Business that its failure to get trade credit insurance meant it had been unable to agree banking facilities since Ms McPherson’s 2008 rescue.
“That put pressure on working capital and has been the problem.”
He said Ms McPherson is now working with the administrators “to try and secure the jobs at Ethel Austin.”LOG onto www.ldpbusiness.co.uk and give us your view on this story.
