Fri, 17 Nov 2023 | BUSINESS SALE
CJ Services UK Ltd, a retail display specialist headquartered in Cheshire, has been acquired out of administration in a pre-pack transaction. The company, which was founded in 1995, is based in Runcorn and has a global presence.
The company fell into administration as a result of the massive pressures that have impacted the retail supply chain amid the COVID-19 pandemic and cost-of-living crisis. These headwinds have led to several major retail display firms facing severe financial distress.
In its accounts for the year ending September 30 2022, CJ Services reported turnover of £6.6 million, down from £10.5 million a year earlier, and fell from an operating profit of £365,604 in 2021 to a £612,296 loss in 2022. The company's directors stated that it had been "a year of consolidation and restructure" following the "fallout of COVID and the loss of a significant customer."
Simon Farr and Anthony Collier of specialist business advisory FRP Advisory were appointed as joint administrators to the company and have subsequently secured a sale of the business and its assets to CJ Retail Solutions Global Ltd in a deal that safeguards 54 jobs and helps to ensure continuity of service for the firm’s customers.
FRP Advisory director and CJ Services UK Ltd joint administrator Simon Farr said: "The retail sector has been significantly impacted by the pandemic, which has created subsequent challenges for those across the supply chain, including CJ Services UK Ltd.”
"Completing this deal has not only secured employment for the staff but has also ensured the continued operation of a well-established business in the North West."
The pressures on the UK retail sector have not only impacted retailers themselves, but also businesses throughout the retail supply chain, with some firms forced to close after being unable to secure rescue deals. Read about the recent collapse of another retail display specialist here:
Retail display firm to close after entering administration
Find out about the impact that legislation introduced in 2021 has had on pre-pack sales to connected parties
We are informed by the owner the turnover currently averages £17,000 per week with a gross profit of 20% approx. Post office income in the region of £30,000 per annum approx. Wholesale newsbill £800 per week.
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