The problems for HMC started in 2013, following the loss of a significant customer after it was acquired by a competitor. Despite developing relationships with new customers, the company still suffered severe trading losses, which added to increasing creditor pressure and their first experience of bad debt, the business was unsustainable.
HMC Health & Beauty sought professional advice from Julian Pitts at Real Business Rescue (part of the Begbies Traynor Group), and following an accelerated marketing exercise, the company was subsequently placed into administration.
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Following HMC Health & Beauty being placed into administration on 4 May 2016, a pre-pack sale to an unconnected third party was achieved. The business, including its assets, was bought by Prestige Personal Care Ltd, who are the owners of a number of other businesses in the cosmetics and toiletries industry. Local councilors and residents expressed their delight at the sale and the subsequent saving of 110 jobs.
Still unsure whether liquidation is right for your company? Don't worry, the experts at Real Business Rescue are here to help. Our licensed insolvency practitioners will take the time to understand the problems your company is facing before recommending the best course of action going forward based on your own unique circumstances.