Richard Philpott and Will Wright of KPMG’s Restructuring practice were appointed joint administrators of Whitecroft Essentials Limited on 19 February 2014. Whitecroft is a manufacturer and wholesaler of stationery and haberdashery products, and is located in the Forest of Dean. The business is over 100 years old and is one of few manufacturers of these type of products in the UK.
Immediately upon appointment the joint administrators secured the sale of the business and its assets to Whitecroft Essentials (Lydney) Limited, a company established by the existing management team, backed by a new private investor. The pre-pack sale sees all of Whitecroft’s 47 staff transfer over to the new company.
As part of the overall transaction, KPMG also sold the company’s freehold premises to an investor purchaser. The new owner has committed to upgrade the premises, which need significant investment and improvement works. The majority of the site will be leased back to Whitecroft and the deal also secures ongoing occupation for a number of other tenants who lease units on the site.
Richard Philpott, joint administrator at KPMG, said: “Whitecroft had suffered from sustained trading losses over recent years and these losses, combined with meeting substantial pension obligations, left the business severely cash constrained and unable to continue trading in the short to medium term. The business sale has ensured continuity for the company’s wide customer base across the UK and overseas, and preserved the value of the business.
“Most importantly this deal has secured new investment to take the business forward, repair and rebuild its premises, and give it a new lease of life for the future.”
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