The full toll of the Pindar debts

Andrew Pindar who signed the report issued to creditors
Andrew Pindar who signed the report issued to creditors

NEARLY 50 Scarborough companies have been stung by Pindar’s collapse to the sum of more than £202,000.

Pindar and Sons Ltd and Pindar Plc went in to administration owing almost £114.5 million in total.

The companies are in the red with 1,008 creditors, 46 of which are companies in the Scarborough area.

The biggest to be hit locally are Eastfield based haulage firm TEF Transport, owed £87,695, and Castle Employment Agency, based in York Place, which faces a loss of £36,025.

Money is also outstanding to public funded organisations including Scarborough Council and Scarborough and North East Yorkshire Healthcare Trust.

The family run Pindar firm, which had been trading in Scarborough for 175 years, saw Pindar Plc fall in to administration in July after reporting pre tax losses of £1.7 million over eight months.

Despite agreeing an additional £3 million of funding from HSBC in March, Pindar was hit by a downturn in business which administrators say resulted in a “deterioration of volumes and margins compared to forecast”.

When administrators KPMG were called in Pindar Plc owed £14.7 million to three separate division of HSBC.

In a report, signed by Andrew Pindar, which was issued to creditors this week, KPMG states: “The joint administrators estimate the secured creditors will not recover their indebtedness in full.

“Based upon current information the joint administrators do not expect that there will be sufficient funds available to make a distribution to the company’s unsecured creditors.”

This means there will not be enough money to repay the banks, with little hope of any debts being repayed to companies and individuals.

The news comes as a blow to the 46 Scarborough companies affected.

Earlier this year TEF Transport had invested £1 million in new vehicles after securing a five year contract with Pindar’s web offset and bindery division.

TEF’s owners did not wish to comment, however TEF is continuing to work with York Mailing, which bought the Pindar operation.

Steve Bromham, managing director of Scarborough IT company Save9, said not only is his company owed £3,840, but it has lost a quarter of its revenue from fibre sales following the collapse of Pindar.

He said: “We were very disappointed because Pindar was a long term customer of ours since we started the business in 2002.

“We provided fibre internet access to Pindar, and have lost about a quarter of payments.

“I don’t think anyone is going to get their money back.

“However I am pleased that York Mailing have agreed to continue to use our service.”

Pindar Plc also owed money to three Scarborough hotels, including £968 to Beiderbeckes, in the Crescent.

Other Scarborough firms to have been hit include Nippy Taxis, owed a total of £7,763 by Pindar Plc and Pindar and Sons Limited,

As well as having £4 million outstanding to HM Revenue and Customs, Pindar Plc also had a number of charities listed as creditors, including British Red Cross, Dr Barnardos and Save the Children.

Pindar Plc is also listed as owing the Gym Committee, for the Gym at Pindar House £35,298.

All creditors, and amounts owing, are listed in the report as estimates.

A spokesperson for Scarborough Council said the authority’s accounts department was not aware of any money owed to it.

The board at Pindar Plc had called KPMG in during June to try and help the company raise funds, or secure a sale of the business.

However the company could no longer continue to trade, and it was placed in administration.