Shipham Valves collapsed owing creditors more than £24m

Inside Shipham Valves’ gate valve workshop in Brough, East Yorkshire.

Administrators dealing with collapsed Hull manufacturer Shipham Valves have revealed the firm owes creditors more than £24m.

The historic Brough-based firm called in insolvency experts before Christmas last year, resulting in 39 redundancies from a workforce of 71. Administrators at Mazars blamed cash flow difficulties stemming from global supply chain issues.

Now documents filed at Companies House show claims from 167 creditors, including some neighbouring small firms, totalling £24.5m. The sum includes £12.9m owed to the firm’s parent company, Shipham Holdings, and £7.4m owed private equity owner Evergreen Financial LLC.

Shipham’s demise came in its 225th year and followed three years on from its split from former owners Finnish group Wärtsilä, amid a deal with New York-based Evergreen. The firm, which manufactures non-ferrous and high alloy valves for the marine, oil, gas and energy markets worldwide, regained its historic name following the move.

But accounts show Shipham was loss making with operating losses of £4.9m reported on turnover of £5.9m in 2021. At the time, bosses talked of a healthy order book on the back of restructuring to divest from the €5.8bn Wärtsilä group.

A turnaround plan had been intended to reverse the losses with Evergreen saying it had moved in to provide the resources and support the firm needed to thrive. That included plans to continue Shipham’s brands: Robert Cort, John Mills and Advanced Valve Technology.

Announced the administration of Shipham in December 2023, Patrick Lannagan, joint administrator, said: “The company has experienced cash flow difficulties resulting from global supply chain issues. These cash flow difficulties have led the directors to take the difficult decision to place the company into administration. The company has a strong skill set in manufacturing complimented by a longstanding world recognised brand name and continues to trade while a buyer for the business is sought by the administrators.”

The latest documents from Mazars show Shipham has an estimated deficiency with regards to creditors of £20.8m.