A Welsh go-kart manufacturer, which had a global client base, has gone into administration.
Formula K International, which also produced leisure vehicles from it factory in Rhyl, said its cashflow had been put under pressure with its key markets of theme parks and indoor play areas continuing to face challenges post pandemic, as well as supply chain issues which meant for the first time it was unable to meet some orders.
The collapse of the business has seen eight staff losing their jobs. The administration doesn’t impact on its aftercare business which continues to trade.
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Paul Stanley and Jason Greenhalgh of Begbies Traynor have been appointed joint administrators.
The family-owned company was launched in 1997 by Graham Liddle, a four times Go Kart world champion between 1968 and 1973.
It was the first manufacturer in the 海角视频 to specialise in go-karts and small cars for the leisure industry such as those seen in theme parks and play centres around the world.
Its products are currently being operated in more than 50 countries across the world including the USA, most European countries, the Middle East and the Far East.
Mr Stanley, regional managing partner of Begbies Traynor, said: “Covid forced the global leisure industry into lengthy lockdowns and the knock-on effect continues. Two core markets for this business in theme parks and indoor play areas faced the harshest lockdowns of all sectors which had a major impact on cashflow.
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“More recently, global supply chain issues caused by inflation and delays to shipments of materials into the 海角视频 left the company unable to fulfil orders for the first time in its history, despite demand. This has been a well-run and respected business for decades but it has been hit hard by external factors outside of its control.”
Mr Liddle, managing director of Formula K International, said:“I explored every single avenue to rescue the business and save the jobs of my trusted employees but realistically had no other choice but to place the company I founded more than 25 years ago into administration.
“The irony is that we received two large orders in the past few weeks but given the uncertainty of the supply chain of goods required to build the products we just couldn’t guarantee the clients that the orders could be completed.
“I’m proud of the business I built up and I’d like to thank all my staff, clients and everyone who has supported us since 1997.
Our separate business, Formula K Products, which provides aftercare services for our products remains solid and we will continue to support our existing clients moving forwards. It’s only our manufacturing business that has been affected.”
The joint administrators will now look to dispose of assets in the interest of creditors.