by business editor Trevor Sturgess

Silver Spring, the soft drinks manufacturer, has gone into administration for the second time after facing cash flow problems.

Three years since the struggling Folkestone-based company was subject of a pre-pack administration, in which a buyer had already been lined up, administrators at Zolfo Cooper have been called in to sort out its financial difficulties and possibly look for a buyer.

The company, founded more than a century ago, is one of the UK’s largest independent manufacturers and distributors of branded and own label flavoured waters and mixers.

It pioneered flavoured water but now faces intense competition from bigger players.

It employs around 80 staff and owns a number of well-known brands such as “Perfectly Clear” and “1870”. It is also a major supplier of supermarket own label drinks and soft drinks to the catering and hospitality industry.

A statement from Zolfo Cooper said the administrators had been appointed as a result of Silver Spring experiencing considerable creditor pressure and cash flow problems.

However, miserable summer weather and a spending downturn during London 2012 may have been contributory factors.

The firm is continuing to trade while administrators “explore all possible options for the future of the business, including sale as a going concern.”

Kevin Coates of Zolfo Cooper said: “Unfortunately, the company has experienced increased cash flow pressures in recent months.

"Management has explored various options for the business including a sale and a company voluntary arrangement (CVA) without success. As a consequence, the company was placed into administration.”

He added: “We will consider all options available and we believe the company is an attractive proposition, particularly given the strength of its well-known brands. Expressions of interest from potential buyers are welcome.”

If no buyer can be found for the business as a going concern, a person familiar with the situation said a possible sale of the firm’s brands and its site for development cannot be ruled out.