IRTE News

Canute Group placed into administration

3rd Jan 2019

Almtone-owned Canute Group officially ceased operations on 21 December resulting in large-scale job losses.

Reports suggest that around 120 staff members have moved to customers Saint-Gobin and Made.com under TUPE regulations, but the remainder have been made redundant. Professional services consultancy Begbies Traynor is handling the administration process.

A statement issued by the administrator said: "The group has been experiencing severe cash flow difficulties and, despite securing an interim funding facility in early November, was unable to secure the wider equity and financing that was needed to enable the turnaround of the group to be finalised and secure the future trading of the business.”

News of Canute’s struggles became apparent early last year, and in May a pre-pack sale left creditors facing a £5.3m deficit.

In response to the operator licence applications made by Almtone Limited, a spokesman for the Office of the Traffic Commissioner (OTC) said: “The applications were considered at a preliminary hearing on 3 December 2018 by the lead traffic commissioner, Mr Tim Blackmore. The applicant did not meet the mandatory financial standing requirement in advance of the hearing.”

The Canute Group website confirms the news. It states: “It is with great sadness that we have to announce that The Canute Group have now ceased trading. We would like to thank our customers, suppliers and staff, who have supported us over the last 40 years.”

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