Hunter Rubber Company goes into administration

Hunter Rubber Company goes into administration

	Published : Wed, 12 Apr 2006 12:30 By : Paula Demarzio Print this Story

LONDON: Hunter Rubber Company, makers of the well known Hunter Wellington green rubber boots, has called in administrators as it faced a financial crisis and is looking for a possible buyer.

Accountancy firm KPMG has nominated three of its senior managers from its corporate recovery practice as joint administrators as the firm turned to the consultancy under threat of a collapse.

Richard Fleming, one of the joint administrators, said the administrators will try to sell the business. He was confident "this will be achieved as Hunter brand is held in such high esteem worldwide".

The Dumfries-based firm, whose Wellington boots have been a must-own item among celebrities and the influentials, employs around 100 people. It had revenues of about 8.3 million pounds but has been making losses on account of the high manufacturing costs and a rather unsuccessful expansion into the U.S. According to documents filed with the Company House, the firm had incurred a loss of 600,000 pounds for the period September 2003 to February 2005. It had a net debt of 2.03 million pounds.

The company's shareholders had put in 1.7 million pounds into the business during this period, but despite this and healthy sales, the company faced financial difficulties.

Fleming said the company had added to its product range hats and jackets, but these have not found the desired response from the market.

He said the company has received several approaches from buyers. Meanwhile, it will continue to trade.

Founded in 1856 as the North British Rubber Company, it has been making boots using a process of curing, or vulcanising, natural rubber. It had supplied specialist boots to the British army during World War 1 for use by troops in flooded trenches. The brand Hunters became popular with labourers and as a wet weather wear for men, women and children.

The Welly boots, originally part of the country scenario, have found great acceptance among celebrities like Kate Moss and Madonna and the company has standing orders from the royalty in the U.K. It has now taken up manufacture of the boots in red, blue and pink. Around 200,000 pairs of Wellies are made a year, with some of the handmade, designer versions costing several hundreds of pounds.