An update from administrator FRP advisory Trading has confirmed the scale of debts at the business.
The same administrator is handling the fall-out from the failure of Norstead’s sister business Metnor which sank just days before owing its supply chain £10m.
FRP said Norstead was hit hard by the failure of Metnor, which was its biggest customer, the withdrawal of a major funder and increases in material costs.
Latest accounts for Norstead show it made a net profit of £133,000 from a turnover of £20.3m in 2021.
The administrator said unsecured creditors could expect some payment for their invoices but it is only expected to be pennies in the pound.
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