Failed by success
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TRAILER Systems of Newham has put itself in the hands of the receiver because the company has been too successful in its four years of trading.
The problem has arisen because of its inability to raise cash for expansion particularly because of the high cost of equipping for quality production.
The company has also been accused of overtrading by would-be backers. For instance if a haulier orders 20 trailers, it is not acceptable to provide one or two.
John Davis, managing director of the company, said: "Last year we had an order worth £154m. There was no way we could get that because it would have meant overtrading. We could not get the funds, so the French got the order."
The search for funds started a year ago with the National Enterprise Board, the Department of Industry and the Industrial and Commercial Finance Corporation, but no one was prepared to help. Even the help of the local MP was enlisted, but his efforts produced no results.
Now that the company is in receivership, it could be sold as a continuing business or, alternatively, the product sold abroad under licence. Either way there will be future sales of the Trailer Systems trailers.