Sources report that the insolvency was brought on by a combination of financial issues, including the downturn in the economy. A large debt from an associated company, PC Friend Franchise Limited, is also a major factor.
A new company, Tanark Manufacturing, has already been formed by Pete Tantram – MD of Product Line Services.
PC Friend Franchise Limited was unable to pay back the debt, and also entered into administration on 15 September.
These issues combined with the pound weakening against the dollar are reported to have caused major cashflow problems, leaving the company unable to pay its own debts as they became due.
Founded in 2000, Product Line Services went into liquidation in 2005 before reappearing as Product Line Services (UK) Ltd.
The company’s plant, equipment, goodwill, intellectual property, stock, records, VAT records, customer database and supplier contracts were all sold to Tanark Manufacturing Limited for a total of £85,000.
Tanark lists the same management and staff, and was formed on 9 August 2010.
Pete Tantrum, Managing Director of Product Line Services, has been contacted for comment.