A North West company specialising in food processing machinery has entered administration, culminating in the loss of all six positions. Stephen Berry and Jason Greenhalgh of Begbies Traynor in Liverpool were appointed as Joint Administrators of DanTech UK Limited on 27 August. The firm, known for its global reach, ceased trading prior to this appointment.
DanTech UK Limited, established over 20 years ago, has installed machinery in factories worldwide, encompassing regions such as China, USA, South Africa, the Middle East, Asia, Australia, and Europe. Despite its extensive operations, the company, based in Burscough and operating from a modern 15,000 sq ft facility in Thetford, Norfolk, succumbed to challenging economic conditions. The enterprise reported a turnover of £1,384,523 in its most recent financial accounts.
According to Stephen Berry, a partner at Begbies Traynor, the appointment of Joint Administrators aimed to protect the creditors’ position. Berry stated, “I can confirm that we have been appointed as Joint Administrators of DanTech UK Limited to protect the position of the creditors.” He further elaborated, “The business has been hard hit by challenging economic conditions, not just here in the UK but in the multiple international markets in which it operates.”
A sale of the company’s assets, which consist primarily of food processing machinery, is currently underway. This step is seen as crucial to mitigating the impact on creditors and other stakeholders involved.
Meanwhile, the employees affected by the firm’s closure are now facing the realities of job loss, a situation exacerbated by the broader economic challenges affecting the industry. The exact causes behind the company’s decline remain unelucidated, but the overarching difficult economic climate appears to be a significant factor. The administrators’ efforts will now focus on navigating the company’s obligations and realising the value of its remaining assets.
The closure of DanTech UK Limited marks a significant industry setback, underlining the severe impact of global and local economic challenges on businesses. The steps taken by the administrators underscore the complexities involved in protecting creditor interests while dealing with the aftermath of such corporate insolvencies.
