Nationwide insolvency practitioner, SFP, has completed a sale of the business and certain assets of The Supplies House Limited preserving the future of 15 employees in the process.
Incorporated in 1985, The Supplies House Limited was based in Enfield and provided wholesale distribution of household cleaning products to some of the UK’s largest contract cleaners. Despite an estimated turnover of £3.5 million in 2017, the company suffered a significant bad debt.
One of its major contracts was also renegotiated that also resulted in a reduce profit margin, and some of its competitors reduced prices to a level it could not compete with which brought about a loss in market share.
Following this, the Directors sought the appointment of administrators. Simon and Daniel Plant of SFP were appointed as Joint Administrators on the 7th November 2018.
Agents undertook a marketing campaign and a valuation of the business. Following the passing of the deadline, a sale of the business and certain assets was completed on 15th November 2018 to Shout Supplies Limited. The 15 employees have been transferred to the new company.
“This case underlines the importance of approaching turnaround specialists before the state of the business is too dire,” says Simon Plant. “In this instance we have been able to preserve the good will of customers and continue the employment for staff. The sale of the company’s property interest will be completed in due course.”