Lietcorp bought from administration

Loss-making LED luminaire maker Lietcorp and its parent company Ocean-LED have been bought out of administration.

The two firms – which went into administration on 14 March after a troubled recent history – have been sold separately as going concerns.

Leicester-based Lietcorp sells LED lighting for commercial, retail and hospitality applications and clients include the pub company Mitchells & Butlers. However, a decision to outsource manufacturing to India resulted in stock with ‘chronic defects’, costing the firm over £1 million, according to a report from administrators.

High research and development costs, poor sales forecasting and consequent stock build-up were also blamed for the withdrawal of shareholder support and the collapse of the business. Lietcorp has now been sold to Future Energy Lighting Technologies for £180,000. In a statement, new CEO Derek Duffill said: 'Lietcorp's accreditations and awards speak for themselves; we produce world class commercial lighting applications and are fortunate to have talented lighting designers and engineers based here in the UK. This is an exciting phase in the growth of Lietcorp and the acquisition by Future Energy Lighting Technologies Ltd allows us to invest further in creating cutting edge lighting technology'.

Ocean-LED specialises in waterproof lighting for luxury yachts, but the company suffered in the slump of 2007 and 2008. This part of the business has been bought out by management for £420,000.

The administrators, David Ruben & Partners, told creditors that the disposal of both parts of the business in the ‘pre-packaged’ sale preserves 47 jobs and was a preferred alternative to liquidation.