Wed, 19 Jun 2024 | BUSINESS SALE
A kitchen supplies wholesaler based in Stoke-on-Trent has been acquired out of administration. Swift Electrical Wholesalers (S-O-T) Limited fell into administration earlier this week, before being immediately sold to a connected party.
The company, based on Fenton Industrial Estate, had been operating for more than 40 years, serving as a wholesaler and distributor of kitchen appliances, taps and sinks. According to the firm, it “played a key role in the supply of kitchen appliances to the trade throughout the UK.”
However, over the past year, the company had encountered an array of challenges, most notably the loss of a key customer, which subsequently resulted in the loss of a major supplier. This significantly impacted the firm’s profitability and led to mounting cash flow pressure.
In addition, it had become loss making after facing difficulties in recovering from the COVID-19 pandemic and making changes to its product portfolio. Despite the company’s directors implementing a turnaround plan, it had not been able to return to profitability.
As a result of these issues, Howard Smith and Tim Bateson of Interpath Advisory were appointed as joint administrators of the company on June 17 2024. Immediately following their appointment, the joint administrators secured a sale of the business and assets to The Recycling Group, a connected party, in a deal that saved 34 jobs.
Howard Smith, joint administrator and Managing Director at Interpath Advisory, commented: "The continuing difficulties with product shortages seen during the pandemic, along with the loss of both a key customer and supplier, had a significant impact on the company.”
“As a result of these mounting pressures, the directors sought to undertake a review of their investment, refinance and sale options. When it became clear that a solvent solution could not be found, they took the difficult decision to seek the appointment of administrators.”
"We're pleased to have been able to conclude this transaction, safeguarding the future of the business and saving 34 jobs."
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