On 17 April 1930 a petition calling for the company to be wound up compulsorily was presented in the High Court (Chancery Division) by the Midland Bank. At a hearing held on 8 May 1930 this petition was withdrawn on settlement of an £8,000 guarantee. However, the sale of the works to George Cohen, Sons & Co Ltd was announced in August 1930; a skeleton staff was employed to complete contracts in progress. Another winding-up petition was presented on 10 September 1930 and an order was made on 14 October. At the creditors' meeting held on 14 November Herbert Langham Reed, the company's chairman and managing director, attributed the failure of the company to the locking up of capital in the Peninsular Locomotive Company, registered in India 1921 to build locomotives (Kerr, Stuart held 80% of the capital and loaned £78,000), the winding-up petition, which had resulted in a loss of confidence in the company, and 'to liabilities incurred by the company in supporting other companies'.