Pre-pack deal enables rescue of portable building manufacturer
Fri, 11 Aug 2023 | BUSINESS SALE
A West Midlands-based manufacturer of portable buildings has been acquired out of administration by a new connected entity in a pre-pack deal. Halletts Group Limited fell into administration on August 2 2023, at a time when many manufacturers are struggling with inflation, supply chain disruption and soaring energy costs.
Conrad Beighton and David Griffiths of Leonard Curtis were appointed as joint administrators to the firm after it had run into financial difficulties amid substantial debts and the impact of the cost of living crisis.
The joint administrators subsequently secured a pre-pack sale of the business and its assets to Halletts Spaces Limited, in a deal that sees all jobs at the firm transferred to the purchaser under TUPE regulations.
Joint administrator Conrad Beighton commented: "The pre-packaged sale achieved represents the best outcome for the company's creditors as a whole and has resulted in the successful transfer of all jobs to the new entity."
Founded around 30 years ago, Halletts Group initially traded as a freight and haulage operator, before the haulage operation ceased in 2021. Since then, the group has diversified into a supplier of bespoke buildings, as well as a converter of steel container into living and work spaces.
In the group’s accounts for the year ending December 31 2021, its fixed assets were valued at close to £1.4 million and current assets at around £1.2 million. However, the company owed creditors £1.1 million falling within one year and £1.3 million falling after more than one year, leaving it with net assets of £106,615.
Read about the headwinds facing UK manufacturing firms.
Pre-pack administrations can be a highly effective way to save a business, but they have also attracted an increasing degree of scrutiny. Read about the impact of the latest regulations surrounding pre-pack acquisitions.
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