Updated: 12th May 2016
A pre-pack administration deal has seen 110 jobs saved at a health and beauty company based in the town of Thetford in Norfolk.
A deal to transfer ownership of the business, which supplies a wide variety of health and beauty products to numerous different brands in the field, was readied prior to its recent entry into administration and a sale could therefore be completed within a matter of days.
The buyer of HMC Health & Beauty is a newly created third party company called Prestige Personal Care, which has named as its directors a number of individuals who already operate complementary businesses in the cosmetics and toiletries industry.
Julian Pitts and Bob Maxwell from Begbies Traynor were appointed as joint administrators of HMC Health & Beauty after cash flow problems took their toll on the company and left it in an unsustainable financial position.
A particular challenge for the business was the process of rebuilding its cash flows and revenue position after losing a significant customer in 2013 due to it being acquired by a competitor.
It is now hoped that the company’s new owners will be able to take the business forward and develop it on a more sustainable financial basis.
“It is very good news that HMC Health & Beauty has been acquired as a going concern by a purchaser with a strong track record in the sector,” said joint administrator Julian Pitts from Begbies Traynor’s office in Leeds.
“Not only does it mean that the business will continue to trade, safeguarding the livelihoods of the staff, but it also puts it on a more secure footing for the future.”
Having been founded in 2000, HMC Health & Beauty developed as a business from the starting point of being a maker and supplier of cosmetics to a single customer.
In recent years, the company has been operating primarily from at 42,000 sq ft facility in Thetford, where the majority of its 110-strong workforce have been based.
The pre-pack sale of the business to Prestige Personal Care Ltd was made possible by an accelerated marketing process that was undertaken prior to its entry into administration on May 4th 2016. With 100 offices stretching from Inverness down to Exeter, Real Business Rescue can offer unparalleled director advice across the UK.