Jonathan Avery-Gee of Kay Johnson Gee was appointed liquidator of the company on 25 January 2011.
The company ceased trading on 31 December 2010, with the business's plant and machinery, furniture and equipment, motor vehicles, stock and goodwill sold the same day to Crosland Laser Guarding for £50,000. The report states that the asset valuation was carried out by an independent valuer prior to its appointment.
According to the notice sent to creditors, Crosland VK directors John Briggs and John Whiteside are the shareholders of the new business, which was formed on 1 October 2010.
All staff were transferred to the new business under the Transfer of Undertaking Protection of Employment Regulations (TUPE).
Gordon Rees at Kay Johnson Gee said: "The sale of the assets preserved 11 jobs, which saved £120,000 in redundancy, pay in lieu of notice and holiday pay."
The creditors' letter claimed that Crosland's turnover began to decrease in 2008 when the economy began to enter into a recession, with Crosland's customers unwilling to commit to capital spending.
It stated: "The sales reduced significantly over the year and profit depleted. To compensate, staff levels were reduced as customers either reduced the maintenance on the machinery or withdrew from the market place; the spare parts business reduced considerably.
"In the autumn of 2010, which is normally the strong season, the expected increase after the summer holidays failed to materialise; in fact turnover reduced further, resulting in cashflow problems."
The company left behind £519,000 of liabilities, including £65,349 in respect of PAYE and £56,822 in VAT.
Crosland was not available for comment at the time of writing.
- This article initially eroniously stated that Crosland VK sales director John Cunningham was a shareholder of the new company, rather than John Whiteside. This has now been corrected.
