Administrators secure sale of Castleoak timber frame assets
Thu, 04 Nov 2021 | DIVISION SALE
Administrators from Interpath Advisory have secured a sale for the assets of the timber frame business of retirement and care home developer Castleoak to Robinson Manufacturing. Castleoak Holdings, along with the businesses within its group, were put into administration by directors last week.
Interpath Advisory’s Steve Absolom and Will Wright were appointed joint administrators for the timber division Castleoak Offsite Manufacturing, as well as for Castleoak Holdings. Interpath Advisory’s Sarah Collins and Steve Absolom were also appointed joint liquidators for another business in the group, Castleoak Care Partnerships.
Castleoak Offsite Manufacturing, operated as an offsite manufacturer of timber frames used in the construction of the wider group’s retirement and care home facilities. In its accounts for the year ending March 31 2019, the division, then trading as Castleoak Timber Frame Ltd, reported post-tax profits of £120,276 on £3.1 million turnover. At the time, its net assets were valued at £451,385.
Following the acquisition of the timber division, Robinson Manufacturing will seek to restart production at the Ebbw Vale site and has said it will explore opportunities to provide roles for staff made redundant during the administration process.
Robinson Manufacturing CEO Simon Kidney said: “We are delighted to have concluded this transaction, which will see production re-start in Ebbw Vale and which will hopefully provide new employment opportunities for a number of employees who had been affected by redundancy. We’d like to thank all stakeholders for their support in helping to conclude this transaction and wish the team at Robinson Manufacturing all the best for the future.”
Will Wright, joint administrator and Interpath Advisory’s Head of Restructuring, commented: “Although a number of companies across the construction sector are facing significant challenges as a result of issues including price inflation, supply chain disruption and labour shortages, there are still parts of the sector which are seeing exceptional demand and strong growth. In particular, the demand for more modern and sustainable methods of construction is driving opportunities in the growing timber frame market.”
The deal was advised on by Interpath Advisory’s Will Daniels, who said: “We are delighted to have concluded this transaction, which will see production re-start in Ebbw Vale and which will hopefully provide new employment opportunities for a number of employees who had been affected by redundancy. We’d like to thank all stakeholders for their support in helping to conclude this transaction and wish the team at Robinson Manufacturing all the best for the future.”
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