Plant and tool hire firm Hiremee Ltd has entered administration after partners at insolvency firm FRP Advisory were appointed as joint administrators.
Hiremee Ltd was established in 1976 and supplies equipment including large machinery, tools and clothing to customers from its three depots in Royston, Bishops Stortford and Ware in Hertfordshire.
Partners at specialist restructuring, recovery and insolvency firm FRP Advisory, Jason Baker and Geoff Rowley were appointed as administrators today.
Mr Baker said: “A downturn in the construction industry has led to fewer businesses needing to hire equipment from Hiremee – so, despite an excellent reputation amongst its customer base, this has led to cash flow difficulties.
“The decline in liquidity also made it harder for Hiremee to pay back the large amount of debt it had taken on to fund growth.”
The company mostly hires equipment to local businesses in Hertfordshire, Cambridgeshire and Essex and receives a high level of repeat custom.
Hiremee will continue to trade, while its business, goodwill and assets are for sale. The joint administrators have make six of the 20 members of staff redundant immediately.
Mr Baker added: “Having investigated all options with Hiremee’s director, it was concluded that entering administration would be the best route to safeguarding the value of the business.
“We are now trading Hiremee as a going concern, with a view to identifying potential buyers for its business and assets and securing a sale as quickly as possible.”