Silver Spring goes into administration
Silver Spring, the soft drinks manufacturer, has gone into
administration for the second time after facing cash flow
Three years since the struggling Folkestone-based company was
subject of a pre-pack administration, in which a buyer had already
been lined up, administrators at Zolfo Cooper have been called in
to sort out its financial difficulties and possibly look for a
The company, founded more than a century ago, is one of the UK’s
largest independent manufacturers and distributors of branded and
own label flavoured waters and mixers.
It pioneered flavoured water but now faces intense competition
from bigger players.
It employs around 80 staff and owns a number of well-known
brands such as “Perfectly Clear” and “1870”. It is also a major
supplier of supermarket own label drinks and soft drinks to the
catering and hospitality industry.
A statement from Zolfo Cooper said the administrators had been
appointed as a result of Silver Spring experiencing considerable
creditor pressure and cash flow problems.
However, miserable summer weather and a spending downturn during
London 2012 may have been contributory factors.
The firm is continuing to trade while administrators “explore
all possible options for the future of the business, including sale
as a going concern.”
Kevin Coates of Zolfo Cooper said: “Unfortunately, the company
has experienced increased cash flow pressures in recent months.
"Management has explored various options for the business
including a sale and a company voluntary arrangement (CVA) without
success. As a consequence, the company was placed into
He added: “We will consider all options available and we believe
the company is an attractive proposition, particularly given the
strength of its well-known brands. Expressions of interest from
potential buyers are welcome.”
If no buyer can be found for the business as a going concern, a
person familiar with the situation said a possible sale of the
firm’s brands and its site for development cannot be ruled out.
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