The managing director of equestrian manufacturer Vale Brothers hopes a “significant” number of the 80 jobs in the company will be protected, despite the fact the company has filed a notice of intent to appoint administrators.
The firm, whose brands include Thermatex, Harry Dabbs and Jeffries Saddlery, filed the notice on 27 September. Managing director Peter Wilkes told H&H there is hope that a buyer will be found, and that the big difference between filing the notice of intent and appointing administrators from the off is that the former “enables a smoother, more controlled process, as opposed to a bunfight”.
“This protects us from creditors for two weeks,” he said. “Had we gone straight into receivership, they would have lost everything. At this point, it means I’m still running the business, but not in complete control of the finances. We’re making some payments that are critical, so the business can continue and out potential buyer isn’t buying anything damaged.”
Mr Wilkes said Covid had an effect on the business, “but the biggest issue has been the Russia-Ukraine war”.
“Material costs have increased between 10 and 150% in the last 18 months, on average probably 35%,” he said. “So our selling prices have of course had to increase, and we’ve had to absorb some of those costs, so our margins have been hit. And at the same time, the distress the world economy is in – this is different to other recessions in that they tend to have a regional centre; the [2008] financial crash didn’t affect many countries that didn’t have a banking system like the UK and US, but this is global.”
Mr Wilkes said he had calls to make today but “I know there are interested parties”.
“We hope to protect a significant number of jobs,” he said.
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