Amdega customers to lose average 10k each

HUNDREDS of customers of collapsed North East conservatory maker Amdega will lose an average of £10,000 they had paid in deposits.

HUNDREDS of customers of collapsed North East conservatory maker Amdega will lose an average of £10,000 they had paid in deposits.

Administrators of the Darlington company are working to fulfil as many orders as they can after taking control of a business which had worked up debts of £6.5m.

Half of the debt is owed to around 300 customers who had paid large down-payments on their conservatory and administrator KPMG said it hoped to help as many as they could.

A KPMG spokeswoman said: “We are working very hard to see if we can send out orders which were ready or nearly ready and are looking at ways of helping as many of the customers as we can.

“But these are early days and I would stress we are just exploring all the options at the moment.”

Amdega went out of business this week after suffering cash-flow problems and administrator KPMG made nearly all of its 197-strong workforce redundant.

The 137-year-old company had been put into administration by Endless, the London firm which had bought it nine months ago with the intention of investing and building its business.

Amdega had been seeing a drop in trade for around four years and after seeing a 2008 loss of £1m had managed a £74,000 profit in 2009 before slumping back £6.2m into the red in the 12 months to the end of September 2010 on a turnover of £17.6m.

A spokesman for Endless said: “At the time of investing we knew that turnaround of Amdega was going to be difficult. However, due to significant legacy issues we inherited together with extremely difficult trading conditions, on this occasion a rescue of the company has not been possible.”

 

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