Reviewed: 11th February 2016
More than 200 people have lost their jobs after a toiletries company based in Devon was entered into administration in recent days.
Staff were reportedly given little warning as Broad Oak Toiletries ceased to trade after calling in administrators.
It has also emerged that the members of the company’s 214-strong workforce have not been paid for their work during the month of January.
Plans had been in place to see the Tiverton-based business sold to new owners but a deal to that effect fell through before completion and left the firm’s bosses facing a financial crisis and no option but to enter their business into administration.
“Regrettably it has been necessary to effect the redundancies of all employees,” a brief statement from Broad Oak Toiletries made clear.
Administrators appointed to manage the company’s affairs and repay its creditors as fully as possible said: “The company exhausted all possible options to continue to trade and, ultimately, in the absence of a buyer of the business as a going concern, it was forced to cease to trade and unfortunately all employees have been made redundant.”
Broad Oak Toiletries has been a significant employer in Tiverton for more than 20 years, having been based at a facility within the Tiverton Business Park since 1989.
The company made a broad range of toiletries, cosmetics and health and beauty products for big name brands including the likes of Jack Wills and Jo Malone, which are widely sold throughout the country.
Administrators explained in statements given to local news sources in Devon that Broad Oak Toiletries had succeeded in expanding its customer base during the 18-month period prior to its entry into administration.
However, these developments apparently “led to capacity issues at its Tiverton manufacturing plant which put insurmountable pressures on its working capital”.
“The joint administrators will seek purchasers of the specialist assets and interest in the significant leasehold properties in Tiverton and Burlescombe and, going forward, will seek to maximise recoveries for the benefit of all creditors,” administrators have told the Mid Devon Gazette. With 75 offices stretching from Inverness down to Exeter, Real Business Rescue can offer unparalleled director advice across the UK.