All 70 jobs have been saved at Derby commercial catering equipment suppliers Parry Group after it was sold as a going concern.
The 70-year-old business, which designs and manufactures stainless steel equipment and furniture, specialising in catering and clinical environments, has been acquired by Parry Catering Equipment (Midlands) Ltd and will be operated by the existing management team lead by managing director Mark Banton.
The total value of the deal is undisclosed but includes the business and the assets of the company based on Town End Road in Draycott.
The deal sees creditors significantly better off – an estimated dividend of 31p in the pound rather than 13p, and will allow Parry Group to avoid claims through the National Insurance Fund for any redundancies.
Insolvency and business turnaround specialist Wilson Field was appointed to Parry Group, which has been in existence since 1945 and consists of three divisions; Commercial Catering Equipment, Stainless Steel Furniture and Parry Electrical, on 5 December.
The company had experienced a difficult trading period resulting in possible enforcement action by HMRC.
Joint administrators Lisa Hogg and Kelly Burton from Wilson Field worked closely with Mark Banton to secure a future for the company and secure all 70 jobs. Some of employees have been with the company for more than 30 years’ service.
Lisa Hogg, director and insolvency practitioner at Wilson Field in Sheffield, said; “The company had experienced a difficult trading period resulting in the accumulation of VAT arrears. The threat of enforcement action by HMRC resulted in the directors seeking advice from Wilson Field.
“We estimate that the pre-pack transaction will result in a better outcome for creditors by more than 18p in the pound and no claim will be made from the National Insurance Fund in respect of redundancy payments.
“It is always satisfying when old established business can be saved. From what was a difficult situation has emerged a good result for creditors and staff.”
Parry Group managing director Mark Banton said; “This has been a difficult period but I am pleased with the outcome.
“All staff jobs have been retained – some of whom have been with us for more than 30 years.
“We are now looking forward to a bright future with the same team, the same high quality products and continuing our high service standards.
“It is testament to the effective teamwork between all parties that this deal was turned around so quickly and gratifying that as an established local manufacturer we can continue to trade.”