Family-owned manufacturing company enters liquidation

A family-owned business which had been manufacturing for more than 75 years has entered liquidation after it ceased trading.

Nick Harris and Lucinda Coleman, partners in the restructuring team at PKF Francis Clark, have been appointed joint liquidators of North Devon-based Witon Engineering Limited. They are now seeking buyers for the company’s assets.

The manufacturer of precision-turned parts operated as a family-owned business since 1948, incorporating in 1993. Using traditional methods with modern machinery and tooling, Witon Engineering developed and made parts for use in a wide range of industries.

Historically, the business traded successfully, building a loyal customer base over more than three decades. At its peak, the company employed more than 60 people at its Barnstaple headquarters.

In recent years, customer demand was adversely affected by economic uncertainties linked to Brexit, the Covid pandemic and the war in Ukraine. Significant increases in energy and operational costs also put pressure on margins.

Witon Engineering entered creditors’ voluntary liquidation on Thursday 10 September following sustained financial challenges, exacerbated by a fall in customer confidence and sales in recent months after a strong start to the year.

Having considered all available options, the directors concluded there was no reasonable prospect of the company returning to sustainable profitability. As the company was unable to meet its liabilities as they fell due, they decided to cease trading and seek professional insolvency advice to protect the interests of creditors.

Sadly, 23 employees were made redundant after the company ceased trading in July.

Nick said: “It’s always sad when a longstanding and well-regarded business like Witon Engineering is unable to continue trading. Despite the directors’ efforts to control expenditure, improve efficiencies and pursue new business opportunities over recent years, unfortunately there was no viable alternative to liquidation in the circumstances.

“Our focus now is on realising the assets of the company in order to deliver a return to creditors. We expect a high level of interest in the company’s assets, especially the large amount of engineering plant and machinery.

“We will also be supporting former employees in making claims for any amounts they are entitled to from the company through the Redundancy Payments Service.”

Specialist agent Simon Cornelius-Light, of Lambert Smith Hampton, is assisting the liquidators in the asset realisation process.

“We are delighted to be offering a range of high-quality machine tools for sale, which are already generating significant interest both across the UK and internationally,” said Simon. “The machinery will be available to purchase via online auction in the coming weeks.”

Creditors and interested parties are encouraged to contact Lucy Roberts as soon as possible on 01392 302643 or [email protected].

For details of the machinery for sale or to register your interest, email [email protected].

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