Two Wanganui companies with a similar focus placed in receivership late last week have already ceased to trade.
Black Scorpion Leather Solutions Ltd and Black Ridge Apparel Ltd were both been placed with Auckland-base receivers PKF Corporate Recovery and Insolvency Ltd on Friday.
Receiver and manager Stephen Lawrence said two companies had effectively stopped trading on Tuesday last week, although a third party had attempted to keep the businesses afloat under a new company. That third party now no longer wanted to pursue that course, Mr Lawrence said yesterday.
"To complicate matters, the plant and machinery belonged to another third party, and we are in the process of working through all that," Mr Lawrence said.
"There is very little asset left, so what will probably happen is that the plant and machinery will be handed back to the third-party owner and that will spell the end."
The companies were set up officially several years ago by former Wanganui Prison officer Chris McIntyre and his wife Leanne, although the origins of Black Scorpion went a decade further back.
Mr McIntyre had been a prison officer when vehicle checkpoints were introduced in the late 1990s.
Staff members wore new tactical overalls and needed belts to hold their search equipment.
He had always done leather work and made himself a belt. Other staff saw it and wanted one.
He made belts for the Wanganui Prison team and then the Manawatu team wanted them too.
The McIntyres set up a production line in their garage and, when that was going well, Mr McIntyre left the prison and the couple started manufacturing in Pacific Place.
Some time later, the makers of WK Backhouse oilskin clothing downsized and the McIntyres took over what was left of the 100-year-plus business in April 2008. They called it Black Ridge Apparel and ran it as a separate company. Black Scorpion mainly made law-enforcement equipment for government departments and security companies.
They moved operations under one roof in Hatrick St in June, 2008.
Blackout for Black Ridge and Black Scorpion
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