SFP has been appointed administrators of Abrapower Limited, after the company experienced cash flow issues. The Staffordshire-based manufacturer of foam-coated abrasive sponges employed approximately 40 people at its offices.

Founded in 1986, the independent family firm manufactured a range of foam-coated abrasive sponges, including sanding blocks, sanding pads and nail buffing blocks in a range of sizes, grades and grain types. Abrapower's products are used in the furniture, automotive and home improvement industries, and the company exports 90% of its output to the United States, Australia and Europe.

A downturn in trade has brought about cash flow difficulties that led to the company having to cease trading. SFP's Daniel and Simon Plant were appointed joint administrators of the company.

Daniel Plant, group partner at SFP, says that with the economic woes being experienced in all of Abrapower's key markets, it is not surprising that there has been a downturn in orders: 'The management of cashflow is a critical issue for business survival, as this was a major cause of Abrapower's decline.

'We are currently in discussions with a number of interested parties regarding the sale of the company as a going concern.'