News: World leading manufacturer of parachute material goes under

[cpoxon 0]

From http://www.creditman.biz/uk/members/news-view.asp?newsviewID=4636&id=1&mylocation=News&chksrc=NNow4251

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Philip Long and Ian Schofield of PKF accountants and business advisers have been appointed administrative receivers for Perseverance Mills Ltd, a world leading manufacturer of specialist lightweight fabrics for the parachute, leisure and outdoor sports industries.
70% of Perseverance Mills Ltd's business comes from exporting goods and the company has found it increasingly difficult to deal with fierce price competition from abroad.

The Company, based in Burnley and Padiham, has 205 employees and had an average annual turnover of £15million.

Philip Long said: "As administrative receivers we are looking to trade the business as a going concern. The directors were trying to sell the business and have been in talks with a number of interested parties.

"PKF has been very successful in achieving going concern sales and we hope to do the same for Perseverance Mills Ltd who, after many profitable years, has faced an increasingly tough marketplace."

Perseverance Mills Ltd was founded in 1901 and has become a world leader in its field. Perseverance Mill developed a unique outdoor fabric called Pertex, which is 50% lighter and packs 50% smaller than the others available. Mountaineers and climbers around the world benefit from this fabric used in clothing and equipment such as sleeping bags and jackets.

I wonder how big the parachute side of the business compares with the clothing and equipment side. Even with the military I would imagine that it is relatively small? Still I wonder how this is going to affect the cost of sport parachutes. The article in the recent Skydiving magazine alluded to Perserverance Mills being the manfuacturer of the new lightweight material for the smaller packing PD reserves, although bizarely, neither company would confirm it. I wonder how this will effect their release?

Skydiving Fatalities - Cease not to learn 'til thou cease to live

[riggerrob 558]

Bummer!
Perseverance wove some mighty fine canopy fabric.

[rmsmith 1]

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...70% of Perseverance Mills Ltd's business comes from exporting goods and the company has found it increasingly difficult to deal with fierce price competition from abroad.

The falling dollar($) is hurting the bottom line at the same time energy costs have risen sharply. Debt means no cushion!

[kelpdiver 2]

So did they shut down production, or are they just in a state of bankrupcy? It wasn't clear, and this could be a difference in meaning of terms between the US and Britain.

[jakee 1,254]

From that one article I would say that they are still producing at the moment, but the future depends on whether the recievers are able to find a buyer. I think these are the key paragraphs.

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Philip Long said: "As administrative receivers we are looking to trade the business as a going concern. The directors were trying to sell the business and have been in talks with a number of interested parties.

"PKF has been very successful in achieving going concern sales and we hope to do the same for Perseverance Mills Ltd who, after many profitable years, has faced an increasingly tough marketplace."

Do you want to have an ideagasm?