Ellies granted liquidation order

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Ellies granted liquidation order

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Published Date: 2021-04-13 | Source: Stephen Gunnion | Author: Stephen Gunnion

Ellies granted liquidation order

The consumer and commercial electronics group applied to liquidate its manufacturing division after cutting financial assistance.

Ellies Holdings says the High Court has granted a final liquidation order for Ellies Industries as it prepares to wind its manufacturing division up.

The consumer and commercial electronics group applied for the liquidation in February, saying the manufacturing business was a drain on the resources of the rest of the group. It said there was no hope that the division would be able to turn a profit for at least two years.

Ellies has two main segments including trading and distribution business Ellies Electronics and manufacturing business Ellies Industries, which makes, sells and distributes satellite dishes,TV aerials, brackets and mounts - mostly to Ellies Electronics.

The company hired an external consultant last year to assess the operations of the Industries unit to help identify ways to improve its viability. However, it said the exercise didn't find sufficient positives to persuade the company that its continued support of the business was justifiable or in the best interests of the company and its shareholders. It said that it was cheaper to buy the products made by the manufacturing division from external sources. After trying to sell Industries as a going concern, one potential buyer completed a comprehensive due diligence but declined to make a binding offer while another transaction fell through after failing to raise the required security and vendor funding.

The company's shares closed unchanged at 9c yesterday.





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