Entatech has fallen into administration just after it was announced Beta Distribution pulled out of an agreement to purchase the firm. The deal fell through after due diligence was carried out and the value of Entatech’s stock was questioned.
50 employees have been made redundant, 29 continue at the company to try and maximise value for the creditors and explore options to sell the business.
KPMG have been appointed Administrators of Entatech UK after attempts to complete a sale failed. Chris Pole from KPMG said “Entatech has been affected by difficult trading conditions for some time.”
“Following a change in ownership and attempts to restructure the business, the loss of a number of key contracts and declining sales has led to a significant drain on the company’s financial situation. This ultimately led to the directors taking the difficult decision to place it into administration.”
Jason Tsai, the former owner of ENTA Technologies, was banned from being a company director earlier this year for his part in a VAT carousel. He took his legal dispute with HMRC to the Supreme Court, but lost.
Dave Stevinson, managing director of Entatech,has declined to comment.
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