Thu, 20 Jun 2024 | BUSINESS SALE
A packaging company in South Wales has been acquired out of administration in a deal that saves more than 40 jobs. A B Group Packaging UK Limited had been trading for more than 14 years before falling into administration earlier this month.
The company operates from a base in Ebbw Vale and is the UK subsidiary of a group of companies based in Ireland. The business produces sustainable paper packaging and grocery bags for a range of national and international retailers.
However, the company had struggled in the wake of the COVID-19 pandemic and had encountered significant financial hardship over recent years. In accounts for the year ending February 28 2022, the business reported turnover of £13.3 million, up from £10.4 million in its previous set of accounts.
However, during the same period, its post-tax profits fell from £127,818 in 2021 to £94,105, while it had net liabilities totalling approximately £2.2 million. The company’s directors stated at the time that the results were “satisfactory”, adding that the business had been impacted by economic headwinds such as rising energy costs.
Despite this, the company’s struggles seem to have continued and it ultimately fell into administration in early June, with Jason Elliott and Craig Johns of Cowgills appointed as joint administrators.
Upon their appointment, the joint administrators undertook an accelerated sale of A B Group Packaging’s business and assets, securing a sale to a third-party purchaser that ensures the continuity of 41 jobs.
Joint administrator and Cowgills Head of Business Recovery Jason Elliott, who led the transaction, commented: “A B Group Packaging is a very well established business which had for a number of reasons struggled over the last couple of years.”
“We have worked with the directors and in these very difficult and uncertain economic times are delighted to have been able to complete a sale to a third party purchaser which saves 41 jobs.”
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