News

Pre-pack deal saves jobs at caravan awning maker

Posted: 02/11/2018

A specialist manufacturer of caravan awnings based in West Yorkshire has been acquired in a pre-pack deal, securing all jobs.

Gary Blackburn and Paul Whitwam of specialist business advisory firm FRP were appointed as joint administrators of Salou Products Ltd, trading as Bradcot Awnings, on 20 October 2018.

The business had suffered severe cash flow pressures due to the increased cost of manufacturing its products in Eastern Europe and continued competition from cheaper Chinese imports.

Upon appointment, the joint administrators secured the sale of the business and its assets to Bradcot UK Ltd. The company will continue to trade from its existing site in Shipley, with all six jobs transferring.

Gary Blackburn, of FRP Advisory, said: “We have worked closely with the directors to secure a sale which delivers the best result for all stakeholders, and most importantly saves jobs in the local area and ensures continuity of trade for customers.”

Stephen Jones, of Walker Singleton, who acted as agents for the administrator, commented “It was very pleasing to be actively involved in the valuation appraisal and the ultimate sale of the business, as a going concern. Our expertise of the sector and the inventory valuation assisted the administrator in the work-out and the sale of the Company. We wish the new Company all the best in their future trading”.