Maxilode in liquidation
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by Brian Weatherley • Wisbech-based specialist trailer manufacturer Maxilode has gone into voluntary liquidation after eight years in business with debts of close to £200,000. Last year the company turned over £4m.
It blames its downfall on a lack of orders and cashflow problems.
Maxilode boss Cohn Ess says the strength of the pound and aggressive pricing by UK rivals hit the company's export business and scuppered its chances of long-term survival in the domestic market.
The company had a sales and marketing agreement with the German trailer maker Krone but Ess reports that over the past three months the strength of the pound has made it impossible to export.
"We've been caught out by currency changes hayMg invested £100,000 over the past two years in gaining type approval and in prototype work in products for Europe and that's what has hit us," he says. "The Deutschmark rates in particular have taken their Ess has also accused the three largest manufacturers of skeletal equipment —Fr uehauf , Montracon and SDC—of cutting their UK prices by more than £1,500, making it impossible for Maxilode to make a profit.
"The big three are carving each other up in every sector of the market," says Ess. "A little manufacturer can't survive if the big ones play silly buggers. I'm the first to go but I don't think I'll be the last."
The company's 19 employees have been made redundant but Ess says he will light to remain in the industry.
[ The liquidation is being handled by Michael Perkins at Bulley Davey of Peterborough, contact 01733 69494.
A creditors' meeting was held yesterday (30 May).