As the future of Norton Motorcycles hangs in the balance, details of some of the company’s creditors have emerged.
The boss of the Leicester and Leicestershire Enterprise Partnership (LLEP) said they were owed £750,000, which had been provided as a loan to support construction of a new factory at the company’s Leicesterhire headquarters.
Meanwhile it has been revealed that accounting firm BDO was brought in as administrators of the motorbike business by the main creditor Metro Bank.
HMRC will also be owed money – earlier this month Norton was in the High Court over £300,000 of unpaid taxes.
That case had been adjourned until February 12.
Norton went into administration on Wednesday, putting 100 jobs at its Castle Donington base at risk.
As of last night it had not been announced if production will continue or whether any potential buyers for the business have come forward.
The Norton Motorcycles website was still running, but links to the site’s “shop” and “factory tour” pages came back with the message “this account has been suspended”.
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No-one from the business was available for comment and Business-Live has attempted to contact Norton owner Stuart Garner a number of times.
BDO said it was taking “all necessary steps” to ensure customers, staff and suppliers were supported through the administration process.
Lee Causer, BDO business restructuring partner, said: “Our job is to determine and execute the most appropriate strategy as swiftly as possible to protect creditors’ interests, bearing in mind the need to minimise distress for all parties.”
The Priest House hotel, also in Castle Donington, and which is connected to the bike business, is also in administration.
LLEP chief executive Mandip Rai said he hoped a buyer for both could be found but said his team would work with organisations such as JobcentrePlus to provide whatever help was necessary for staff – should the worst come to the worst.
Mr Rai said: “It is sad news.
“It is a strong local brand with a good local presence and had been a growing business.
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“I don’t know the ins and outs of what has happened but their tax debt with HMRC could have been a factor in them going into administration.
“Eighteen months ago we sanctioned a Growing Places Fund loan to Norton of £750,000 for a new manufacturing facility.
“Until we have had further clarification through the administrator we won’t know what happens next.
“It is early days and the focus right now is on making sure agencies that can support the workers, should they need it, are ready to do as much as they can.
“Right now there is not much to add while the administrators do their work.
“The support we gave Norton was the same as all Growing Places Fund loans.
“We’re not a bank, but we do go through various due diligence processes and look at their financial standing and do the usual credit checks.
“Part of it is looking at the business case they have submitted.
“The LLEP is here to support jobs and growth. Norton is a century-old brand and there was a strong commitment from its owner Stuart Garner, and the board’s decision was made on the strategic importance of that.
“Clearly something has gone wrong within the business which resulted in the administrators being called in.
“I know that the new factory has now been built but, as part of the loan contract, it would have been about now that the business would have supplied us with a performance report.
“We will be on the list of the people owed money. I’m sure there will be others and the administrators will be in contact with all the creditors at some point.
“But in terms of their credit-worthiness at the time of the loan, that was all checked."
North West Leicestershire MP Andrew Bridgen said: “We need somebody to come in and buy the business."