Moulder Shep Plastics falls victim to recession

Independent insolvency practitioners, Tom Ahmad and Paul Bailey of Bailey Ahmad were appointed joint liquidators of the company on 15 January.

Ahmad told PRW that Shep’s directors had considered options for keeping the company running or seeking an administration sale of the company’s business as a going concern, but given the circumstances the directors were left with no option but to cease to trade and take steps to place the company into creditors’ voluntary liquidation.

“The primary reason for Shep Plastics’ liquidation was the impact of recession,” he said.

Last year the company suffered a reduction in orders from its customers and this was exacerbated by Shep needing to carry higher levels of just-in-time stock than in the past. Ahmad cited other contributory factors: cost increases in labour and raw materials; and the requirement for Shep to pay suppliers up front due to the withdrawal of trade insurance cover.

The joint liquidators are now in the process of realising the company’s assets, including the sale of equipment, such as injection moulding machines for the benefit of the company and its creditors.

Shep’s former commercial director, Tony Perkin, told PRW he has now set up a consultancy called Tech-Value. This aims to bring together customers seeking plastics manufacturing with moulders and mouldmakers in the UK and China.

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