The rebirth of historic Aberdeen mattress-maker Glencraft more than 12 years ago left creditors of the old, failed business out of pocket but they may yet get their money back.
Liquidators for the “oldco” social enterprise are now urging those owed cash to get in touch after someone left a substantial sum to the business on their death.
FRP Advisory, which will deal with any claims, said the private bequest at the heart of its “unusual appeal” was a low six-figure amount.
But the passage of time could in many cases get in the way of people making their claims as original paperwork or emails may no longer exist.
Cash in the attic?
Jim Urquhart, who runs Urquhart Home Furnishers in Mintlaw, Aberdeenshire, lost more than £2,900 when the original Glencraft went bust in late 2009. He got just £59 back and will spend this coming weekend searching in his attic for proof of the rest.
Mr Urquhart, who was the only creditor who attended a liquidation meeting in the wake of the oldco’s collapse, said: “I wrote it off a long time ago. If I get anything more back, it will be a bonus.”
He isn’t too confident – the liquidators no longer have details of his past claim and he only has access to his own emails stretching back around six years. The attic is his last hope of finding some shred of evidence, but he plans to submit a new claim anyway.
“Many other creditors will be in the same situation,” Mr Urquhart said, adding his previously Maud-based business was hit by a hat-trick of bad debts, including the Glencraft oldco, around 2009-10.
Glencraft was resurrected and the royal warrant holder continues to provide career opportunities for disadvantaged, disabled and visually-impaired people.
It boasts a history going back nearly 180 years, but the original business – founded in 1843 as The Royal Aberdeen Workshops for the Blind and Disabled – ceased trading in November 2009, with the loss of more than 50 jobs. The collapse into liquidation followed a two-year battle to overcome the loss of funding from Aberdeen City Council.
In April 2010 it was revealed the furniture factory had been rescued, thanks to a £233,000 grant from Scottish Enterprise (SE), a £150,000 loan from the social-investment banking arm of SE and a six-figure sum from energy services firm PSN in cash and staff time, along with considerable support from two local businessmen, Duncan Skinner and Bob Keiller. Premises on Wellington Road were provided rent-free for a year by the council, with Glencraft subsequently relocating to Whitemyres Avenue.
FRP Advisory partners Iain Fraser and Tom MacLennan were joint liquidators for the oldco and have been reappointed to manage the legacy funds.
Mr Fraser said: “The Royal Aberdeen Workshops for the Blind and Disabled was a highly regarded enterprise with a reputation for excellence across the UK. It is greatly rewarding that the business has successfully continued with Glencraft (Aberdeen) Limited.”
“The legacy has only recently come to light following a bereavement and we are asking creditors to contact us so that matters can be concluded promptly.”
The joint liquidators are stressing the legacy bequeathed to the original social enterprise that went into liquidation is “entirely unconnected” to the current Glencraft.
Creditors or their representatives can contact FRP Advisory in Aberdeen on 0330 055 5455 or by emailing cp.aberdeen@frpadvisory.com
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