Game over as cash-flow crisis forces Corsie to call receivers

Published on Saturday 10 May 2008 11:19

THE troubled Lothians firm founded by former world champion bowler Richard Corsie MBE has gone into administration, just days after the company insisted it had a future.

The directors of the Haddington-based Corsie Group announced late yesterday they had appointed Blair Nimmo and Gary Fraser of KPMG Restructuring as joint administrators.

The move, brought about by cash-flow problems at the company, has led to eight people being made redundant with immediate effect.

The administrators said they would now be looking for a buyer for the business, which is mainly involved in supplying bowling green equipment.

The move follows weeks of turmoil which have seen the company lose its founder, chairman and two directors, and had trading in its shares suspended.

Earlier this week the News reported that David McArthur, finance director and secretary of the Corsie Group, said the company, which is based at the former Mitsubishi plant in Haddington, was looking to recruit replacement directors, and insisted the company had a future despite its problems.

The Corsie Group was founded by the former world bowls champion, in 1997 after he retired from the sport.

It includes Greengauge Sports, which supplies a variety of sporting equipment for use in lawn bowls, and Greengauge Surfaces, which distributes artificial grass and synthetic turf for use in indoor and outdoor bowling, tennis courts, children's playgrounds and home gardens.

Kaloss, a leading supplier of health and beauty products – such as dietary supplements and tanning creams – was also part of the group.

The company employed around 28 people and has an annual turnover of 3.9 million, but recently it has started to suffer from cash-flow pressures, due in part to difficult trading conditions and a write-down in stock levels.

In a statement, the joint administrators said it was too early at this stage to confirm the likely outcome for creditors.

Blair Nimmo, joint administrator and head of restructuring for KPMG in Scotland, said: "It is with regret that we have had to make these redundancies, but we remain hopeful that we can find a buyer for the business."

The company has faced uncertainty in recent weeks. Former Scotland rugby international Jim Aitken, who had been earmarked as the company's next chairman, stood down, and the firm then had its shares suspended "pending clarification of its financial position", triggering the resignation of non-executive director Vikram Lall.

It postponed publication of its latest results last month as an ongoing audit takes place.

Chairman David Mathewson then stood down from his role, followed by Mr Corsie himself just last week.

&#149 www.corsiegroup.com