More than 75% of jobs at Haymills, the troubled property refurbishment company have been saved through a pre-packaged administration sale.
433 of the company’s 559 employees still have jobs after insolvency experts hammered out the deal.
Although politicians have recently claimed pre-packs disadvantage trade creditors, by finding a buyer in secret and shedding company debts, the insolvency community considers it an invaluable tool as access to keep businesses trading remains hard to secure.
As is often the case, an intensive period of behind-the-scenes activity took place as the Insolvency Practitioners worked with the group to explore the options available to them.
Haymills was facing severe difficulties because of financial obligations and losses in its Gibraltar subsidiary. A deal with a potential purchaser could not conclude in time, leading to an urgent search for another buyer. The claim from Gibraltar rendered the UK group insolvent leaving no alternative but to conclude a sale out of administration.