Builder's merchant Blanchford Building Supplies racked up debts of more than £3.3million to suppliers before it fell into administration.
The 75-year-old Headington-based business closed down ‘without warning’ earlier this year without giving any reason.
All four of Blanchford's shops in Bicester, Wallingford, Princes Risborough and Haddenham closed on February 14.
Timothy Townley and Danny Dartnaill, of business restructuring specialist BDO LLP, were appointed as joint administrators in mid-February.
In their report, the administrators said Blanchford traded profitably over the year but had been loss making since 2017, with the exception of 2021 and 2022.
Accounts show turnover had reduced by around £3million (21 per cent) in 2024 compared to 2023.
Mr Townley said in his report: “The company continued to underperform, and its cash position deteriorated further, leaving it unable to purchase essential stock lines such as sand and cement.
“Consequently, management concluded that without significant additional investment from the existing shareholders, new owner or investor (around £1million) a cessation of trade and a formal insolvency process would be inevitable.”
A sale process for the business was launched on January 30 with a deadline of February 7 – but this was not enough time for interested parties, Mr Townley said.
And consequently, with Blanchford facing an increased threat of creditor action and no way of paying staff for February, management concluded insolvency was “inevitable”, he added.
One of the first actions the administrators took was to make 56 employees redundant but keep a handful on to help wind down the business.
On the date of the administrators’ appointment, Blanchford had £28,068 cash in the bank, which was frozen, as well as £6,062 in petty cash.
More than 260 creditors are estimated to be owed more than £3.3million - with administrators receiving so far claims of £908,000.
Current forecasts suggest creditors will receive 2.7p in the pound back.
Many businesses are Oxfordshire-based, including aggregate supplier Smith & Sons which is owed £37k, Abingdon-based commercial vehicle specialist M&M Commercials (owed £22k) and WEI & TMF Malins, of Lords Farm, Bicester, owed £148k.
HMRC, a secondary creditor, has put in a claim of around £239,000 for unpaid VAT and PAYE.
A total of 59 employees, current and former, have put in claims totalling £620,997.
The book value of Blanchford’s stock is at £1,342,635 with an estimated to realise value of £161,116, significantly lower because many are not working properly or broken.
Administrators have estimated around £490,000 can be brought back from the sale of vehicles and returning hire vehicles, but they have a book value of £611,000.
The family-run business was opened by founded by brothers Fred, Cecil and Ronald Blanchford, and retained its independence throughout its time.
