Creditors to lose over £2m as Yorkshire kitchen worktop and memorial firm enters administration

It follows two associated companies - J Rotherham Holdings and J Rotherham Masonry - going into administration themselves less than three years ago in May 2020 in a process which resulted in the loss of more than 200 jobs.

J Rotherham, which operates from Mason’s Yard in York, operated two businesses - Gemini Worktops and Mindful Memorials.

A report by administrators Mazars said both arms of the business were “understood” to have been loss-making over the past year.

It said: “The company has experienced various supply chain challenges over the last few years, in common with other businesses, resulting from the Covid-19 pandemic and the war in Ukraine.

"These have included fabrication supply issues, capacity constraints and increased delivery costs as well as raw material supply issues and lead time issues resulting in slower sale completions despite increased order volumes.”

A material funding requirement of £2m was identified, with efforts to secure new funding proving “ultimately unsuccessful”.

The report reveals that after Mazars was formally instructed in January to start formalities around placing the company into administration, on March 9 earlier this month the Mindful Memorial business was sold for just under £80,000.

The purchaser was Mindful Memorials Ltd, which has a common shareholder and director with J Rotherham in Anna Buckley.

On the same day, the Gemini Worktop business was sold for just over £119,000 to Middlesbrough-based F Jones Cleveland Ltd.

While not associated with J Rotherham, the administration report lists F Jones is among its creditors, with more than £500,000 owed.

The 77 staff employed by the company across the two divisions have had their contracts transferred to the new owners.

Three secured creditors - Bank of Scotland, NPIF and Reward Capital - collectively owed £670,00 are expected to receive their money back following the planned sale of a building in Barnsley.

The company owned six freehold buildings in Yorkshire which the Mindful Memorials business was run out and will be continued to be used for an initial three months. A “well-advanced” sale of the Barnsley property is expected to be completed shortly by administrators.

HMRC is a secondary creditor owed more than £1.1m and the administration report said it is likely to receive some but not all money back.

But the report notes that the £2.6m owed to unsecured creditors, which include dozens of businesses and seven local councils, is unlikely to be repaid.

It states: “Based on current information, it is estimated there will be insufficient asset realisations to enable a dividend to the unsecured creditors.”

Mazars was contacted for comment.