Global Fastener News

Administrators Take Over European Fastener Manufacturers Lench & Tinsley

John Wolz

The directors of two European fastener companies, T. W. Lench Ltd. and Eliza Tinsley Group, called in business recovery administrators, Fastener & Fixing Europe reported.

The UK process of business recovery is similar to bankruptcy. An industry observer speculated that rising European wire rod prices vs. lower Asian steel prices plus higher energy costs have hurt both companies.

The Lench company has manufactured fasteners for more than 100 years. At its peak Lench employed 1,500 people in Rowley Regis, an industrial regional of the UK West Midlands.
In 2004 the Lench family sold the original plant site for residential development and move to a smaller �1 million (U.S.$1.7 million) factory nearby.
At the time of the move the plant employed 60 and manufactured structural bolts used in earthmoving equipment, trains and agricultural machinery.

Robert Lench, a senior figure and well known throughout European fastener manufacturing, has stepped down as president of the European Industrial Fasteners Institute.

The Eliza Tinsley Group has a range of steel component manufacturing products including fasteners, consumer hardware and chains. The Group”s holdings include PS&W Inc. of North Carolina. The UK business still includes light duty chain making allied to a wide range of consumer hardware and fastener products.
Four years ago the Group cut dividends due to underfunded pensions.
Last September the Group reported a �1.22 million (U.S.$2.13 million) six-month loss on sales of �41.2 million ($71.8 million) and an overall debt of �21.6 million ($37.6 million).
Application for administration followed unsuccessful negotiations with bankers.
Observers speculated due to limited synergy between divisions Eliza Tinsley Group could be broken up.

In the UK an administrator is usually by directors of the company, by a court or lenders. The administrator must be a qualified insolvency practitioner and has the status of an officer of court in legal terms. The administrator manages the company, and evaluates its financial condition, particularly in terms of whether it can be sold as a going concern. �2006 FastenerNews.com and Fastener & Fixing Europe