A manufacturing company that produces agricultural chemical products has been placed into administration, as SMEs continue to suffer in what has been the worst year for corporate collapses on record.
The collapse also comes as the manufacturing industry continues to suffer some of the worst conditions in several years, with many suffering severe problems with cashflow and tax debts.
Rygel, which is based in Victoria, was placed into administration on November 25, although administrator Glenn Franklin told SmartCompany the collapse was more due to internal problems than any outside influences.
“It’s more of an individual company issue, but we’re continuing to trade,” he said, confirming the first creditors’ meeting is set to take place today.
“The purpose of the administration is to restructure business, potentially through a deed of company arrangement. So we want to allow the company to continue to operate and come through everything with the possibility of continuing.”
An advertisement states the business has 33 distribution locations, with turnover of approximately $7.4 million in the 2011 financial year. Current stock is also approximated to be $875,000.
The company says it distributes products to the Australian, New Zealand and Pacific markets, and also notes that it places a large amount of emphasis on its research and development program, which usually exceeds 3% of company turnover.
“Rygel maintains an active association with leading researchers around the world and is regularly seeking to evaluate new technology in the Australian environment.”
“Rygel also has a responsive development department that constantly modifies and develops products to satisfy various opportunities and requests generated by its customers.”
The advertisement for the business also notes a number of pieces of equipment for sale, including registrations for 60 chemical products, stainless steel vessels, baths, portable pumps, forklifts, along with IT and administration equipment.
Franklin said today’s meeting will be focused on ensuring the company can survive.
“We’ll be using the first meeting to deal with a number of issues. But the company is still trading, and the intention is to come out the other side with prospects for the business.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
