Lubriage, the exclusive distributor of Mannol lubricants in the United Kingdom, ceased trading last week, leaving behind unpaid debts, unpaid staff and growing questions about the company’s operations. No official announcement has been made in the U.K. company register.
The Northamptonshire-based company and its parent, United Arab Emirates-based SCT Chemicals FZE, became embroiled in a U.K. Trade Remedies Authority investigation last year. The government agency, which protects domestic businesses from unfair overseas competition, concluded that SCT Chemicals, owner of the Mannol trademark, had dumped low-cost lubricants into the U.K. market through Lubriage, which traded under the Mannol name.
The news of the departure was welcomed by Mark Lord, managing director of Aztec Oils. Lord had led efforts to curb Mannol’s expansion in the U.K., arguing that its low-priced automotive lubricants and hydraulic fluids made it impossible for domestic producers to compete.
“A small victory in the U.K.,” he told Lube Report.
More recently on April 23, the European Commission announced it had placed SCT Chemicals on its sanctions list for supplying additives to a marine engine manufacturer that serves the Russian military.
One former employee who requested anonymity wrote in a statement seen by Lube Report that in March the company had already begun “systematically clearing out the warehouse,” removing inventory, equipment and other assets from the site. Destinations for these shipments included Afghanistan, Germany and Lithuania, the former employee said.
While wages went unpaid, the company continued shipping stock and equipment overseas and dismantling operations at its Kettering warehouse during the closing weeks of trading, the statement said.
The former employee further alleged that SCT Chemicals issued a financial statement in April showing Lubriage owed it a substantial sum of money. Erik Sudheimer, the owner of Lubriage, was the CEO of SCT Chemicals at the time. Sudheimer since resigned from SCT Chemicals but is still CEO of Sudheimer Group, according to his social media profile. He did not respond to a request for comment.
Among Lubriage’s creditors is Urban Logistics Acquisitions 7 Ltd, which filed a winding-up petition against the company in May. If successful, the action could have forced Lubriage into compulsory liquidation. The petition was due to be heard later this month. The company and its legal representatives declined to comment but indicated that it would still pursue Lubriage through the courts.
Another U.K. company, Revolution Oil, had taken over distributorship of Mannol in February. It quickly cut ties with SCT Chemicals after it was placed on the sanctions list, according to a statement published by Revolution on social media.