Norton Motorcycles collapses
British company goes under after Metro Bank calls time on debt
British motorcycle maker Norton Motorcycles has gone into administration. The company, based in Leicestershire, has been reportedly struggling to pay a £300,000 tax bill and recently faced a winding-up order put in place by Metro Bank over outstanding amounts to pay.
The administration order puts either 100 or 25 jobs at risk, according to varying reports. Those jobs based at the company’s Castle Donington assembly plant.
Lee Causer, of administrators BDO, said: “We are taking all necessary steps to ensure that customers, staff and suppliers are supported through the administration process.
“Our job is to determine and execute the most appropriate strategy as swiftly as possible to protect creditors’ interests, bearing in mind the need to minimise distress for all parties.”
Norton Motorcycles owner, Stuart Garner’s two other companies are also reported to be in administration, one of which is his Priest House Hotel in Castle Donington.
Since the end of January announcement that Norton was in dire straights, it has emerged that: * Metro Bank confirmed that it spent months working with Norton to find a solution before bringing in the administrators as a last resort
* The Pensions Ombudsman is considering further complaints from investors who put their savings into three pensions schemes linked to the Castle Donington business; 228 individuals invested in the schemes, which in turn invested in Norton
* DHL International issued a petition to wind up Norton Motorcycles back in August last year – but the petition was soon withdrawn
* The Leicester and Leicestershire Enterprise Partnership provided a £750,000 loan to support construction of a new factory at the company’s headquarters. The factory is built, but stands empty, and the LLEP joins the list of creditors.
A Metro Bank spokeswoman said: “Having worked closely with the company for many months, we have acted in the best interest of the company’s stakeholders and employees, and on the basis of independent advice. We have therefore made the difficult decision to request the appointment of administrators.”