Annesley firm folds after administrators unable to find a buyer despite interest
Annesley firm Surepak Limited has announced it is ceasing to trade, despite appointed administrators at PKF Smith Cooper being hopeful of a sale, following the interest of 96 parties.
Surepak Limited’s financial concerns became apparent during the global energy crisis when its electricity costs increased by more than 425 per cent.
This increase, coupled with the loss of two significant contracts, decreased the company’s turnover by circa £1m, due to customers’ packaging requirements changing and the relocation of a customer abroad.
The Annesley-based organisation sought a buyer after sole director Stuart Yorston filed for administration back on February 9.
This was to safeguard the company’s business, assets, and employees from a winding-up petition which was served by a creditor and was due to be heard on February 14.
Business recovery and restructuring partners Dean Nelson and Nick Lee, from PKF Smith Cooper, were appointed joint administrators on February 12.
Despite the challenges, Surepak Limited has continued to trade for the short term whilst in administration and the administrators diligently pursued potential buyers, receiving substantial interest from 96 parties.
Despite the optimum effort following a merger and acquisition process – and various offers being received – the sale progression has subsequently been unsuccessful, resulting in Surepak Limited ceasing to trade as of May 10.
Incorporated in 1991, the company had been trading for more than 32 years, starting out as a distributor, before moving into manufacturing in 2005.
The company’s fixed assets, including plant and machinery, office equipment, and stock are available for sale.
Interested parties are encouraged to contact BPI auctioneers on 01924 245040 to explore this opportunity further.
Polypouch UK Limited has purchased the order book and customers are advised to contact sales director Sam Frankel on 0203 4753456 to discuss their orders going forward.
In statement, the administrators said they were ‘disappointed with the ultimate outcome in not securing a sale of the business and assets as a going concern’.
The continued: “However, we would like to wholeheartedly thank the employees for their hard work and dedication, as well as customers for their continued support throughout this difficult process.”