“I’ll be completely honest with you, this business is about to enter into administration. […] It’s an absolute tragedy and it’s really quite an interesting story to tell,” said Chris Shoebottom in a candid phone conversation with SignLink shortly before he made the announcement to staff.
Since this conversation all Albion’s division websites have been taken down, and no one is answering its phone numbers.
Albion Design and Fabrication’s is listed online as currently made up of its Display, Manufacturing, and Retail Interiors divisions. Its registered office is currently listed as Wilton Developments, 10 South Parade, Leeds, LS15QS.
In a written statement to SignLink, Shoebottom explained what lay behind the firm’s demise: “There is financial (and not least moral) responsibility not to trade and make creditor positions worse.
That the end came so quickly was down to the fact that Albion’s owners decided not to support the business with cash injection”
"That the end came so quickly was down to the fact that Albion’s owners decided not to support the business with cash injection.
“I’m wary of sounding bitter here but there were other ‘dark forces’ which did not help our cause, and lets just say I let ‘the fox into the henhouse’.
"When a firm fails with a core turnover of £2.5 to £3m, great staff, products, and customers, it is sometimes difficult to fathom. But I’m the boss and I am responsible.
“We had a healthy order book, stretched payment deals in place with major creditors, new client wins (a major store group and buying consortium for dental practices) so the timing was hard to swallow.”
We all know the adage about turnover is vanity, but this business was generating cash too from which the owners took their dividends”
Shoebottom continues: “In 2000 Albion was purchased by an Isle of Man-based family trust and Albion thrived reaching a peak turnover of over £7m in 2008.
"We all know the adage about turnover is vanity, but this business was generating cash too from which the owners took their dividends.
“In 2010 we aborted an management buyout. The business and in fact the industry does suffer from a lack of contracts being awarded for work, so its hard to value a business when the forecasted revenues are constantly at risk.
"And the company, despite its diversification, was constantly under attack in its core component business. Many of Albion’s competitors had ditched manufacturing in the UK in favour of sourcing from China.
"We didn’t want to do that, proud of our heritage and proud of our UK manufacturing. Foolhardy perhaps but we had loyal customers that wanted to buy in the UK.
If you are not generating cash how do you fund it without parent investment. An inexorable decline which led to our failure”
“However of course this put margins under pressure and at a time when sign -makers could not forecast work one month ahead, understandably they didn’t want to take the risk of carrying stock.
"Order quantities became smaller, product runs shorter and less frequent. And less margin. A cable kit we’d charge £11.50 for in 2000, you can buy now for under £5, a sign stand off £1.90, now 74p.
“If you are not generating cash how do you fund it without parent investment. An inexorable decline which led to our failure.
"There is good news as I am sure the brand will resurface. Although I’m amused by the feeding frenzy and brazen approaches by competitors asking us to divert Albion's phones to them.
“I see it as a back handed compliment. And definitely the phoenix will rise from the ashes.”
Shoebottom made no comment on how Albion would deal with existing creditors or whether they would be remunerated if its brand was resurrected.
