A statement filed by administrator UHY Hacker Young at Companies House in October said: ‘Accusations were made regarding the safety of certain products so the directors had no alternative than to make the decision to write down the stock valuation of these products as they were of dubious saleability and/or the cost of rectification would have been unaffordable. There were also warranty issues relating to the products, which may have been unaffordable.’
The concerns are understood to have involved fire-rated lighting products.
Cadisch GIGB’s biggest shareholders were Simon Cadisch and Anthony Millington, who between them owned more than three quarters of the business. It was pushed into administration when another company majority-owned by Simon Cadisch demanded repayment of a loan. It has since been bought out by a new firm, EcoLED, also owned by Simon Cadisch and Anthony Millington.
Simon Cadisch denied there had been a safety issue with any products, telling Lux: ‘We apply extremely stringent standards to all our products and all are compliant with all EU regulations.’
A group of Cadisch GIGB’s creditors including former managing director Ian Bibby and power supply distributor Sunpower have now formed a committee for the purpose of investigation.
The administrators’ statement said that, after the departure of Bibby earlier this year, the company suffered a fall in turnover in comparison with the previous year, and day-to-day management was left to ‘a very inexperienced team of staff’. Before it entered administration the company’s profit and loss account showed a loss of more than £300,000.
The North London-based company is the latest in a slew of lighting businesses to enter administration, including Hess, Abacus, Trac and the UK arm of Riegens.
NB: Revo Media Partners, the publisher of Lux magazine, was a creditor of Cadisch GIGB at the time the company entered administration. The new company, EcoLED, has since agreed to settle this debt.