Thu, 03 Oct 2024 | BUSINESS SALE
An engineering company based in Chesterfield has been acquired out of administration in a deal that secures 22 jobs. Hub Engineering Limited specialises in a range of services, including CNC machining, laser profiling and sheet metal forming.
The Poolsbrook-based company was established in 2016, initially operating as a relatively small firm. However, it experienced significant growth amid a surge in demand following the COVID-19 pandemic, as well as a strategic expansion into labour provision.
Despite the growth the company had experienced over recent years, Hub Engineering began encountering difficulties last year, resulting from a combination of unprofitable projects and a dispute with a customer. With concerns regarding its solvency, the company’s directors sought advice from business rescue and recovery specialists at Begbies Traynor this summer.
It subsequently appointed Craig Povey and Gareth Prince of Begbies Traynor as joint administrators on September 25 2024. On the same day, the joint administrators oversaw the pre-pack sale of the business to Hub Engineering Group Limited, saving all 22 jobs.
According to Begbies Traynor partner and joint administrator Craig Povey, the business is now well positioned to trade forward with confidence.
Povey commented: “Following a full assessment of this business and the options available, we concluded that a pre-packaged sale via administration would enable it to continue to provide its unique engineering services.”
“We’re also extremely pleased that the transaction has protected the jobs of all 22 employees and we wish them well for the future.”
In Hub Engineering’s accounts for the year to May 31 2023, its fixed assets were valued at approximately £2.2 million and current assets at around £1.3 million, with net assets standing at around £363,000.
Find out more about the impact of 2021 reforms to regulations on pre-pack acquisitions
Click here to download our free guide on finding and buying distressed businesses and assets
Established 1988, an engineering product and equipment distributor established over 15 years, and located in the heart of West Midlands.
A profitable and well-established engineering business dedicated to delivering exceptional precision parts with unparalleled quality. Specialising in complex, high-tolerance components, this company caters to a wide range of industries, including las...
The business has been successfully trading for nearly a quarter of a century. It is well located in a busy commercial area with good access routes. The property is of a high-quality and in addition the company owns a freehold premises that are let of...
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.