Mon, 18 Mar 2024 | BUSINESS SALE
A Blackburn-based custom clothing company that fell into administration after struggling in the aftermath of the COVID-19 pandemic has been acquired in a rescue deal. Inkthreadable Limited was founded by Alexander and Aaron Cunliffe and Amy Dunn in 2011, when the three were still teenagers.
Despite initially being hit by COVID-19 and its associated lockdowns, the company subsequently experienced a surge in orders during the pandemic, leading it to undertake significant expansion. However, sales failed to remain at these levels, and the company began to suffer from cashflow issues that were exacerbated by tough trading conditions over the past year and significant debts and tax liabilities.
The company, which was based at Blackburn Business Park after moving from its original Oswaldtwistle Mills premises during the pandemic, engaged Leonard Curtis Business Recovery on a “time to pay” agreement with HMRC as it sought to address its immediate financial issues.
However, in January, it was decided that the company was effectively insolvent and that a rescue deal should be sought. According to administrators, the company owed two mortgages to Arkle Limited in relation to its plant and machinery, as well as owing approximately £1.25 million to trade and expense creditors and had also received a government-backed “Bounce Back” loan totalling £28,842 during the pandemic.
Commenting on the company’s struggles, administrator Megan Singleton of Leonard Curtis said: "The directors advised that the company initially suffered financially following the COVID-19 pandemic and subsequent lockdowns.”
"During the pandemic, the company received a surge in orders. As a result of this, the directors made a decision to move into larger trading premises and employ further members of staff to meet this demand.”
"The directors have advised that following the easing of lockdown measures, the level of demand for the company's products reduced to pre-pandemic levels. This resulted in the company servicing larger-than-required premises and having employed more staff than required.”
"As such the company did not have sufficient cashflow to keep up with its overheads and other creditors."
Administrators have now secured a sale of the business to Hyper Merch Limited, of which Inkthreadable co-founder Alexander Cunliffe is a director, in a deal that will see the transfer of 20 jobs and other company assets, including plant and machinery and goodwill, for a total of £130,000.
Click here to download our free guide on finding and buying distressed businesses and assets
Famous destination furniture & flooring retailer, renowned for beds, sofas and chairs from quality British manufacturers. Occupying highly visible high street trading position within the popular East Devon town of Honiton, being easily accessible, be...
LEASEHOLD
Established well known home, hardware, DIY & garden store plus school uniform supplier. Occupying prime Ivybridge town centre trading position, fronting the main shopping thoroughfare, benefiting from restricted stay car parking immediately in front,...
LEASEHOLD
Major landmark store, 100+ years established, occupying valuable trading position within this mid Devon town, centrally positioned on Crediton high street, opposite Costa Coffee, close Tesco Express, with free restricted stay car parking immediately...
FREEHOLD
26
|
Apr
|
Major double glazing firm Everest enters administration | ADMINISTRATION
Everest, one of the largest providers of double-glazing in t...
26
|
Apr
|
Kent-based scientific consultancy sold to US firm | BUSINESS SALE
A4P Consulting Limited, a scientific consultancy company hea...
25
|
Apr
|
Ambulance services provider acquired in pre-pack deal | BUSINESS SALE
Elite Emergency Medical Services Ltd (Elite EMS), an ambulan...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.