Decades-old Ilkeston firm goes into administration after loss of 'major customer'

Metalworking firm JPen, which had traded from Quarry Hill Industrial Park in Ilkeston, appointed liquidators on September 19.
-Credit: (Image: Google Street View)


All employees of a decades-old firm have been made redundant after it fell into administration, marking the end of more than 40 years in business. Metalworking firm JPen, which had traded from Quarry Hill Industrial Park in Ilkeston, appointed liquidators on September 19.

JPen, also known as John Patrick Engineering Limited, had produced chimneys and ducting, dust extraction equipment, ladders and gantry systems, large steel structures as well as storage tanks, hoppers, and silos. Administrators from Begbies Traynor said around £21,640 of assets would be available to the company's preferential creditors, which included former employees and HMRC.

The bust firm owes around £11,526 to employees in arrears and holiday pay, according to documents submitted by administrators to Companies House. Its administrators outlined there were also non-preferential claims from trade creditors of £142,216, 15 former staff claims totalling £201,629, a HMRC claim for £22,020 and a claim for £108,640 from a landlord.

When combined with other amounts owed to creditors the total deficiency in the company's assets was £724,733. The company's limited assets will be sold off to attempt to pay some of these creditors, before the entity is completely closed.

A spokesperson for Begbies Traynor said:“JPEN John Patrik Engineering Limited, a company incorporated in July 2011, has ceased trading and entered into creditors voluntary liquidation on 19 September 2024. Craig J. Povey and Richard H. Toone of Begbies Traynor have been appointed as joint liquidators.

"Unfortunately, due to market conditions and coupled with the loss of a major customer, which has also led to a sizeable bad debt, the company was unable to recover from the loss. As a result of the cash flow and creditor pressure, the directors of the company had no option but to seek to initiate a formal insolvency process."

The business' last financial accounts said it had £648,919 of assets as of July 31, 2023, but also had £601,847 which was due to creditors within the next year. JPen had a total of 23 employees at the end of the 2023 financial year, but had a total of 15 when put into administration.

JPen was started by John Patrick in 1983 and moved to Ilkeston in 1988 so it could increase its workshop space, equipment, staff and production capability. In 2008 the main factory was effectively doubled in size by incorporating a sizable extension, according to the firm's website.