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Danskin assets are sold

12th December 1991
Page 12
Page 12, 12th December 1991 — Danskin assets are sold
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Which of the following most accurately describes the problem?

• The assets and business of Danskin Distribution have been sold, just eight days after the company went into receivership, to an off-the-shelf company called Trans-link Distribution. But Danskin will be wound up and trade creditors will get little or no dividend, warns joint receiver Ian Murdoch.

The private buyer of Danskin's business refuses to be identified, but Danskin's managing director, Ian Carroll, is ex

pected to become a director and shareholder.

At present Murdoch has little idea of the extent of Danskin's debts; he says that identifying the company's assets and completing the sale takes priority: "Creditors came last," he says.

"We were under a lot of pressure. The customer base would have been lost if we had gone another week without selling the company. Customers' confidence was shaken by the receiv ership. They were very nervous.

"We separated the assets from the liabilities, and sold off the assets," he explains. "The debtor level was high, and debts were all factored, but unsecured creditors are unlikely to get much of a dividend, if any."

For the past two months Ian Carroll has been advised by David Kent, a partner in Profitable Business Solutions, a group which is involved with several UK transport businesses.

"There are so many company failures these days," says Tom Brattin, the Road Haulage Association's Scottish director secretary. "It doesn't seem to matter how many companies go to the wall and are sold, the industry still suffers from overcapacity.

"We need to get some sense into the industry, either with agreed minimum rates or licensing authorities tightening up their enforcement of the regulations to ensure that incompetent operators get into the industry."


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