All eight jobs have been saved at a South Tyneside family firm that faced closure after a major customer collapsed. Viking Plywood and Timber Limited, based in South Shields, was placed into administration in June 2026 but has been rescued by a connected company, GK Timber.
Background of the Firm
Trading since 1982, Viking Plywood and Timber operated as an independent sheet material speciality company from Portberry Street Industrial Estate. It sold plywood, MDF, fencing, timber, and flooring to both trade customers and the public.
Cause of Collapse
The business suffered a large bad debt after an unnamed major client went bust. Directors consulted Linda Farish from Northpoint, a Newcastle-based business advisory firm, on rescue options before administration. However, formal insolvency could not be avoided.
Administration and Sale
Greg Whitehead of Northpoint was appointed administrator on 16 June 2026. An accelerated marketing process pre-administration proved fruitless, making a terminal closure seem necessary. However, after administration, GK Timber, a firm formed by connected directors, made an offer that was approved by an independent evaluator.
Administrators confirmed that all eight jobs have been preserved and that there will be a return to some creditors. Northpoint directors stated: “There will be a return to some creditors of Viking and jobs have been preserved. Neither of these would have applied if the business was closed and the assets broken up.”
Parties Involved
The transaction involved several professionals: Paul Rushworth at Clarke Mairs, Julie Skevington at Sincero Funding Solutions, Robert Hurren at Hurren Jubb, Mel Nally at Skipton Business Finance, Kevin Pinkerton at Admin Eval, and Stephen Grieveson at Grievesons Valuers and Auctioneers.
