CORBY, England (March 1, 2010)—Rubber product maker Codan Rubber Ltd. has entered bankruptcy court protection, and is for sale.
The maker of automotive hoses and belts went into administration on Feb 16. and was placed under the management of restructuring and recovery professionals from the Milton Keynes offices of accountants and business advisers Baker Tilly. The move follows insolvency proceedings at Codan's parent group. Maflow Group of Italy.
Acting as the appointed administrators, Baker Tilly put the business up for sale and said it is convinced Codan's substantial market potential will be recognized, particularly by similar automotive and industrial suppliers looking to increase their critical mass and geographic foothold in the United Kingdom.
Baker Tilly said the insolvency of its parent firm in Italy was a key reason for Codan's financial failure. The firm laid off 15 of its 50 employees, and the business continues to operate during its restructuring.