ONE of Bradford's oldest companies collapsed owing nearly £5 million to a raft of unsecured creditors who are "highly unlikely" to get any of their money back, the Telegraph & Argus has learned.

Thomas Wright/Thorite Group Limited - a wholesaler, distributor and installer of compressed air equipment based on Hillam Road - had traded since 1850 but fell into administration last month.

Administrators from restructuring firm Interpath promptly sold the business and its assets to Skelmersdale-based hydraulics company, Flowtech Fluidpower plc, with all of Thorite's 105 employees transferring to the purchaser.

An image from within the Thorite premises from 2013An image from within the Thorite premises from 2013 (Image: T&A)

The T&A has now seen a report from Interpath revealing Thorite collapsed owing a total of £4.8m to a long list of unsecured creditors, including a number of local companies.

The report states: "Based on current estimates, it is highly unlikely that there will be a dividend to unsecured creditors."

One of the local unsecured creditors is PR firm The Right Agency, which has been left just over £5,400 out of pocket following Thorite's collapse.

Sarah Giangregorio, director of The Right Agency, told the T&A: "We are really angry about the situation with Thorite which has left us, and a huge number of other small businesses in the region and beyond, severely out of pocket.

"We understand businesses encounter financial problems and are forced to go into administration but there really needs to be better protection for businesses like ours.

"We are a very small PR agency and this has an impact on us and our employees, as we still have their wages to pay for the work they have done for Thorite.

"We are glad Thorite employees kept their jobs, but it does feel like it was at the expense of a lot of other service providers."

Unlike a secured creditor, unsecured creditors have no specific rights over any of an insolvent party's assets.

Secured creditor RBS Invoice Finance Limited has been repaid in full, while Thorite's second secured creditor, NatWest, will be repaid in full. 

According to Interpath, Thorite had recently experienced trading difficulties and reported a loss of £1.3m for the year ending in March 2024.

"Following an exploration of sale, refinance and investment options, it became clear that a solvent solution was not possible," a spokesperson for Interpath said.

The business and its assets were sold to Flowtech for £350,000 in a pre-pack administration.

Such a procedure facilitates the quick sale of a business in insolvency. It writes off the debts of the existing company with no interruption to the trading business.

A spokesperson for Flowtech told the T&A: "Flowtech is not liable for any debts accumulated by Thorite.

"Any concerns from creditors must be directed to the administrators, Interpath."

They added: "It is always sad when a business falls on hard times and we are grateful to be able to bring Thorite into the Flowtech family.

"We have been incredibly impressed by the professionalism of the Thorite team, who have welcomed us with energy and enthusiasm."

'Delight' at acquisition 

Following the news about Thorite's collapse and the sale to Flowtech, Howard Smith, managing director at Interpath and joint administrator, said: "Having traded for over 150 years, Thomas Wright/Thorite Group Limited has forged a long-standing reputation for innovation and for the quality of its products.

"We're therefore delighted to have secured the future of this historic business, preserving the jobs of its dedicated workforce, with this sale to Flowtech.

"We wish the company all the very best for the future."

Mike England, chief executive of Flowtech, said: "We are delighted to acquire this well-respected brand and skilled workforce.

"On behalf of all of us at Flowtech we welcome our new colleagues to the group.

"This is an exciting moment for us all as both businesses have a history of deep expertise and knowledge in power, motion and control.

"For us at Flowtech, adding Thorite's expertise in pneumatics, automation and compressed air capability is an excellent fit and aligns perfectly with our strategy - a world of motion - which will enhance our scale, margin profile and help to accelerate market share gains."

Thorite was known as Thomas Wright when it was founded in 1850. 

The company started off as a mill furnisher, supplying various essential accessories to the thriving textile trade of the time.