Engineering company from the automotive industry taken over from administration

An engineering company providing services for the automotive sector was taken over from administration. Wolverhampton-based GE Starr Limited went into administration last month after almost 50 years in business.

The company provided specialist engineering services in metal forming, assembly, laser machining, tooling and prototype design, serving a range of automotive clients including Aston Martin, Lotus and Morgan.

Despite its significant market position, the company has faced difficult trading conditions in recent years, in common with many companies in the UK engineering and automotive sectors. These challenges were compounded by delays in some orders, which created difficulties for the company in managing cash flow and debt.

It eventually went into administration at the end of May, with Craig Povey and Gareth Prince of Begbies Traynor appointed joint administrators. The joint administrators then completed the sale of the business to GE Starr Engineering on June 6 in a transaction that secures the company’s position in the supply chain and enabled the re-employment of the majority of its staff.

Craig Povey, partner and joint administrator of Begbies Traynor, commented: “Like many businesses in the automotive sector, the business has faced a number of economic challenges. We are pleased that the company has been able to re-employ most of its employees following the completion of the sale.”

“This positive result in challenging circumstances will ensure the continuity of the company’s important role in its customers’ supply chains.”

GE Starr Limited’s latest accounts at Companies House show that its fixed assets were valued at just over £298,000, its current assets were valued at around £2 million and its net assets were valued at around £300,000.

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