75 Plymouth jobs at risk as company goes into administration
THE boss of Plymouth firm RD Industries has blamed the banking
system for the stationery company going into administration with the
-
Roger Dymond
potential loss of 75 jobs.
Roger Dymond said his firm's inability to borrow £500,000 of "working capital" pitched it into crisis.
The
Estover-based firm had orders worth £200,000 and was shifting up to
£150,000 of products a week, but a major bank called time on the
business, he said.
This was because RD Industries had a £475,000 loan and Mr Dymond said the bank was "running scared".
An 11th-hour bid to buy the company was also turned down by the bank, he said.
That
meant the 30-year-old family-run firm went into administration
yesterday with 75 workers being told their jobs were as good as lost.
But
managing director Mr Dymond is not giving up and is still seeking
finance to bring the company out of administration and provide the
capital needed to continue.
He has spoken to one company
prepared to stump up £300,000, but this is an advance on an order and
still short of the minimum £600,000 he needs.
He said he had only until about Wednesday to raise the money.
After that, the firm would be broken up and its assets sold to pay creditors.
Mr Dymond said that if a lender arrived, production could restart on Tuesday.
"It's a sad day, but I'm not humiliated. We have worked so hard, we have fought to keep the company going," he said.
"The company may be dying but we are going to fight to get back into production.
"I'm trying to attract money to restart production.
"I'm making calls, trying my best to get my people back into work again.
"I have people working here 30 years. Good people. I'm hoping I've not lost them yet," he said.
To come out of administration, the company's assets would have to be bought, said Mr Dymond.
"We need about £500,000 working capital. We couldn't get it through the banking system.
"Manufacturers like ourselves can't get working capital.
"The banks are running scared with everything."
Mr Dymond also blamed the economy and the "neglect of manufacturing".
He said the capital was needed for such things as wages, raw materials and freight costs.
He added: "We had exposure to the bank of about £475,000.
"We've been under pressure for many months from the bank because of our lack of working capital."
Mr Dymond said wages were not paid this month because of the administration, but the Government would pay them.
RD Industries is a family-run firm providing stationery for chain store and supermarket own-brand ranges.
It relocated to Plymouth's Drake Mill Business Park from Saltash in 2006.
It exports to 22 countries and had an annual turnover of up to £7million, with £2million spent on machinery since 2005.
5 Comments
by vicki861, plymouth
Saturday, July 24 2010, 12:48PM
“As the daughter of Jackie Dymond i know she will appreciate that comment she is a fighter
thank you x”
by Robert Ball, Glasgow
Saturday, July 24 2010, 11:59AM
“As a person who knew Jackie Diamond thru Business this is a great shame, Yet another Factory unit now Empty in Estover! Not generating rent/rates or Local employment for staff and suppliers! As my father once said who Manufacturing for years was looked down upon , Government, Schools etc pushed for so called HI Tec and Service industries! They do not create wealth. Hence look at UK Plc Manuf base one of many reasons why its gone South! And again the banks do not seem to have any spirit in lending, It will get worse, I was told RBS are reducing there lending from £6billion to £4.5Billion next year re Mortgages due to restrains at the top.”
by Dionysus, Oxford
Saturday, July 24 2010, 10:19AM
“The total exposure by the bank would in reality be less than the £500k required. As the business is effectively bust and technically worth £0, the bank could acquire the business and thus own all its assets together with all future income.
RD also appears to have an order worth £300k, with the customer willing to pay in advance. Is suspect Mr. Dymond wouldn¿t have to dig too far through an order book spanning 30 years to rally together other loyal and supportive customers.
It would seem a deal could be struck whereby the company is acquired & owned by small a consortium of customers (who pledge a future order stream), supported by the bank (re-assured by guaranteed future orders) with Roger Dymond providing personal warrants & guarantees, assuming he hasn¿t already done so.
In this way, folks get keep their jobs, the bank gets the re-assurance it clearly needs and Mr. Dymond is kept on to deliver the agreed business plan, with the enthusiasm & focus that comes from having your personal assets on the line.”
by ian s, Plymouth
Saturday, July 24 2010, 9:50AM
“So this is why public money was used to bail out the banking system - so instead of helping the industry and economy of this country to grow they can sit there and lick thier wounds and continue to do over the working people of this country. Tried to get help for my business recently from the bank was given the short shrift too - no help what so ever the only journey they are with me for is down the plug hole!
This firm actually manufactures something it should be preserved as a National Treasure. The UK needs to get its head out of its backside and start manufacturing goods. It is a sad state of affairs when in a country like ours you could for example furnish a family home to modern standards using ONLY British made goods - it would be impossible. That show just how dire this country really is now.”
by ada, plymouth
Friday, July 23 2010, 4:54PM
“500 thousand does nt seem alot i thought the banks are suppose to help buisness once again banks fail and put people out of work there alaw unto them selves”