Industrial supplies firm with Black Country head office enters administration with 190 jobs at risk

Monks & Crane at Atlantic Way on the Black Country New Road dates back to 1862 when it started as engineering file manufacturers in Redditch.

It has collapsed after suffering Covid-related losses.

Damian Webb, Tom Straw and Chris Lewis, of RSM UK Restructuring Advisory, were appointed joint administrators of Monks & Crane Industrial Group on February 24.

The company specialises in the sourcing and distribution of high quality industrial products for customers across the UK and has a network of 14 branches including in Birmingham, Manchester, Aberdeen, Belfast and Cardiff.

Group turnover was nearly £40 million last year with the company employing 190 with 68 at the head office.

It was severely impacted by Covid shutdowns and supply chain issues compounded by recent inflationary pressures and the resulting increase in its borrowing costs which significantly increased operational losses.

Management had explored a range of options to rescue the business, including implementing a turnaround strategy.

The inability to access new funding undermined this process with the directors deciding the company could not continue to trade in the absence of new funding.

The administrators are currently working with customers and suppliers to mitigate disruption and loss to them while also exploring the potential sale or transfer of business and assets in order to try and protect jobs.

Mr Webb said: “Regrettably this 160-year-old company has been placed into administration despite the efforts of the management team to recapitalise and rescue the business. This business failure illustrates the issues facing many UK small and medium-sized enterprises in the current challenging economic environment.”