- Created: Friday, 20 April 2012 09:45
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Eighty workers have lost their jobs at the Sheffield based Inman Electrical applaince distributor after it experienced financial problems.
Joint administrators Howard Smith, Mark Firmin and Paul Flint, from accountants KPMG, shut Orgreave-based Inman Electricals after deciding they were unlikely to sell it as a going concern.
Director Chris Wright blamed price erosion, shrinking margins, punitive distribution costs and unfair competition from supermarkets, ‘trade’ warehouses and internet suppliers for the move.
Fifteen of the staff have been retained temporarily to help wind down the business, which supplied electrical goods to customers who included institutional buyers like organisations running university flats and halls of residence, the leisure industry, company kitchens developers of new homes and independent retailers.
Inman had distribution centres in Sheffield, Bristol and London.
The collapse comes just a few years after the company was expanding and launched its own In-Cuisine range of domestic appliances.
The long-established company prided itself on providing enhanced features, product guarantees and service, instead of competing on price and seeking to gain revenue by selling extended warranties.
A spokesman for the administrators said Inman had a turnover of £20 million and 78 employees, but margins were shrinking in a competitive market and that, combined with cashflow problems, led to its insolvency.
So far as we are aware Swift Eelctrical have purchased the stock that was held by Inmans and Swift seem to have picked up many of Inman's accounts.
GreedUnfortunately greed was the main cause of the collapse of the company
Margins were running at 20% this is what we were told to make
This was mainly done through the mix of brands with a high proportion of own brand
However at the time of the difficulties customers wanted a good brand at a keen price
All the management were given the information --- Earn less sell more !!!!
DAD is still going ----- Proof is in the pudding