Major British kitchen company collapses into administration with more than £1million in debts as 18 jobs lost

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Major British kitchen company collapses into administration with more than £1million in debts as 18 jobs lost.

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A Scottish kitchen company has collapsed into administration with debts of more than £1million after trading for 25 years.

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Merchant City Distributors Limited, based in East Kilbride, ceased trading in April, resulting in the loss of all 18 jobs.The business specialised in supplying, distributing and installing gas and electrical products.Joint administrators James Stephen and Ben Peterson of BDO have now published their first report, revealing the full scale of the company's financial difficulties.

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TRENDING Stories Videos Your Say Unsecured creditors are owed £1,064,122 and are not expected to receive any payment.HM Revenue and Customs (HMRC) is owed around £214,000, while appliance manufacturer Electrolux is the largest creditor with a claim of £780,330.Trade creditors are collectively owed £283,784, and BDO has so far received claims totalling £896,873.

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"We do not anticipate a dividend payment to unsecured creditors," the administrators said.All 18 employees were made redundant when...

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