Updated: 2nd March 2016
A company that provides a variety of personal investment services has been sold out of administration to the Embark Group, which provides specialist services of its own in much the same field.
Avalon called in administrators on February 23rd 2016 after struggling with financial difficulties despite administering close to 48,000 customer accounts in relation to various personal investments.
Most prominent among the problems faced by the company in recent months were allegations of fraud made against its former managing director.
Legal claims made in relation to those allegations, which have since seen the former Avalon director involved declared bankrupt, dragged the business into financial difficulties of its own after it was held “jointly and severally liable” for resulting costs incurred by relevant claimants.
“The impact of these significant liabilities and costs on the company’s balance sheet left the directors with no choice but to seek the appointment of special administrators,” a statement from the appointed administrators has since explained.
Once appointed, administrators from KPMG immediately began the process of finding new potential owners for the business, with a deal agreed in recent days to see the Leicester-based Embark Group acquire the company and its assets.
“After a period spent in urgent discussions with various parties with a view to selling the business, we can confirm that we have now sold the business to Embark Services Limited, safeguarding all client funds,” said David Pike, a joint special administrator and director of KPMG’s office in Bristol, in a statement.
“Customers are advised that they will receive further communication regarding their accounts from Embark Services Limited over the coming days,” he added.
Avalon Investment Services had been one of only a small number of companies in England accredited to administer the processes involved in creating Junior ISA saving accounts on behalf of children in local authority care.
A total of 20 people were employed by Avalon at its head office in the town of Tetbury in Gloucestershire. All members of the company’s workforce are to be transferred directly to Embark Services as part of its acquisition deal. Our extensive office network comprises 101 offices across the UK with a partner-led service offering immediate director advice and support.