A TROUBLED Carlisle-based tyre firm went into administration owing more than £13m, it has been revealed.

City businessman Dick Cormack is the man behind tyre brand DMACK, which once supplied the World Rally Championship.

He confirmed earlier this year that his UK sales operation - Technology Sinon UK Ltd - was in administration and he had been forced to scrap ambitious plans to build a new tyre factory in Carlisle.

Instead the former Pirelli manager said he was moving his business to Italy, blaming Brexit for key partner Super Deal tyres pulling out of the factory deal.

Administrators Leonard Curtis have now published their report into Technology Sinon -formerly DMACK Global.

It includes a long list of creditors with claims for a combined total of more than £13m.

Having failed to sell the business, it proposes formerly dissolving the company - and confirms that very few, if any, of the creditors will receive the money owed to them.

The report states Mr Cormack is the majority shareholder in Technology Sinon, with MEMW Management Ltd owning the remaining 25 per cent and Glenn Patterson owning a final five per cent.

It explains that the company was incorporated on June 17, 2011, and traded from Carlisle Airport Business Park until December 2018. In more recent months it has traded from Mr Cormack's home address.

Technology Sinon operated within a group of DMACK companies which also included Sinon Technology UK Ltd (formerly D Mack Ltd) which is in voluntary arrangement, D Mack Holdings Ltd and D Mack Tyres (Quingdao) Ltd.

DMACK is a boutique motorsport tyre business, founded in 2006 to provide rally competitors with premium performance tyres.

Its products were originally manufactured in China.

From 2011 to 2017, DMACK was one of two authorised suppliers to the FIA World Rally Championship

The report shows that historically DMACK was profitable, with sales rising until 2014.

In 2012, it started to manufacture passenger tyres for consumer sale - attracting a £3m capital investment.

However problems began to arise in 2014, when the administrators say there were allegations that the company had been victim of fraudulent activity against it in China.

This resulted in a legal battle which had a significant impact on the business, including stock shortages, cancelled orders and high legal costs. The financial impact is estimated to have cost £13m and resulted in substantial losses.

More recently DMACK moved production from China to the UK, through Cooper Tire and Rubber Company in Melksham.

The costs associated with this, along with limited production, caused the company to be loss making from 2016.

It took on several loans, but remained loss making and began to fall behind on payments.

In March this year, Mr Cormack sought advice from business rescue firm Leonard Curtis.

The business was subsequently advertised for sale but despite some expressions of interest, no offers were received.

Unable to pay debts, it was concluded that the company was insolvent.

In May this year, Mr Cormack instructed Leonard Curtis to put Technology Sinon into administration.

It is now in the process of selling off any remaining assets before formerly dissolving the company.

The creditors list shows claims totalling £13,052,265.

This includes more than £1.5m owed to Dovenby Hall-based MEMW Management Ltd and £7.2m to MEMW/M-Sport; more than £1m to CCH Netherlands; £600,000 to Cooper Tires; and £1m to Tradedriver UK Ltd.

Mr Patterson is also owed £20,000, while there are four employees with total claims of more than £50,000.

The report ranks DMACK SRL as MEMW as secured creditors, and anticipates they may receive some payment.

It does not expect any other creditors will get the funds owed.

Mr Cormack, who still lives near Crosby-on-Eden, just outside Carlisle, has stressed that this is not the end of the DMACK brand.

Its tyres are still being produced, from a new base in Italy.

He told The Cumberland News last month: "We’ve taken on a factory in Italy and are producing our tyres from there.

“The business, DMACK SRL, moved to that location at the back end of last year.”

The now-scrapped Carlisle factory plan was initially unveiled in 2016.

It would have seen a £200m tyre plant, creating up to 500 jobs, built at Kingmoor Park.

Commenting on the Leonard Curtis report, Mr Cormack said: "The administration of Technology Sinon UK is being dealt with by highly respected and experienced administrators.

"All statutory procedures have been followed and the company and its directors will continue to assist the administrators in carrying out their duties.”