News: Logistics firm enters administration

Carlton Forest 3PL Ltd, a logistics firm with a significant warehouse operation in Rotherham, has gone into administration.

James Lumb and Howard Smith from Interpath Advisory were appointed joint administrators to Carlton Forest 3PL Ltd and Green Forest Solutions LLP on 25 March 2024, and to Carlton Forest Group Holdings Limited on 28 March 2024.

Based in Bawtry, Carlton Forest 3PL Ltd is an award-winning warehousing, distribution and logistics business. Employing 90 people, the company operates over 1.2m sq ft of warehouse space across four sites in Bawtry, Worksop, Tuxhill and at Maltby in Rotherham.

Carlton Forest took on the former Wincanton depot on Rotherham Road in 2020. It had been vacant for over ten years having previously operated as a chilled distribution centre for retailers such as Sainsbury's and Tesco.

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Administrators said that, in common with a number of other companies operating in the third party logistics sector, Carlton Forest 3PL had been battling industry and wider economic headwinds, including rising costs, significant excess warehouse capacity in the market and decreasing storage rates.

With pressure on the company’s cashflow increasing, the directors sought to undertake a review of their options, including sale and investment options. However, when a solvent solution could not be found, they took the difficult decision to seek the appointment of administrators.

James Lumb, managing director at Interpath Advisory and joint administrator, said: “We are seeing a lot of businesses in UK logistics which are facing similar issues to Carlton Forest, driven by new warehouse capacity hitting the market over recent years, and the general destocking of the UK consumer economy as Covid-related supply chain disruption has subsided.

“Carlton Forest, like many of its peers in the market, had grown to meet demand and this has had the effect of increasing its overheads. Unfortunately, however, the race to the bottom on pricing and the loss of a key customer ultimately contributed to Carlton Forest’s inability to keep trading.

“Our immediate priority has been to work with employees, suppliers and customers to repatriate stock as quickly as possible, minimising disruption to customers as best we can.”

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News: Alucraft administration confirmed

Alucraft, which has a significant operation in Rotherham, has gone into administration. It is the second time the Manvers site has been affected by problems with construction contracts.

Alucraft Systems, Ireland's leading designer, manufacturer and installer of architectural glazing systems, acquired certain assets, including the fabrication facility in Rotherham, when Façade and Glazing Solutions (FGS) Limited went into administration in 2020.

Now Helen Wheeler-Jones, Edward Williams and Peter Dickens of PwC have been appointed as joint administrators of Alucraft Systems Limited.

Founded in 1975 and part of The Clarison Group, the company manufactures and fits aluminium cladding to the outer walls of infrastructure properties for main contractors.

Recent problematic contracts have resulted in claims and offsets against projects which have impacted on cash flow and profitability of the business.

Administrators confirmed that the 38 people employed by the company have sadly been made redundant and the company’s existing projects will not be completed.

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The Joint Administrators said that they will now focus on the closure of the company’s operations which includes sites at Tamworth and Rotherham and recovery of assets for the benefit of creditors.

The remainder of The Clarison Group is not directly affected by the administration of the company and continues to trade normally.

Alucraft was working on contracts for the new Everton Football Stadium, Portland House in Westminster and various other commercial and residential buildings.

The Clarison Group is majority owned by Elaghmore, the UK-based private equity fund, and acquired Alucraft in 2018.

Previously known as Glassolutions as part of a French multinational, FGS specialised in conception, engineering and installation of glazed façades and building envelopes. Employing hundreds of staff, it rebranded from Sologlas in 2012 and brought together three separate operating divisions into its 65,000 sq ft premises at Manvers in Rotherham in 2011. In 2018, CoBe Capital, acquired the Glassolutions Installation business of the Saint-Gobain Group.

FGS was undone by problems with major projects that caused cashflow issues when a lending facility expired.

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News: New stores opening in Rotherham

Two national retailers are celebrating the opening of new stores in Rotherham.

At the Great Eastern Retail Park in Parkgate, rapidly-growing nationwide pet superstore, Jollyes, is hosting an official launch event on March 22 and 23.

Jollyes has now grown into one of the leading pet food superstores with over 100 locations across the UK. It started in Enfield as a single store in 1971.

Known as "The Pet People," the Rotherham store is the 101st in the country and so the launch event has a 101 Dalmations theme.

The Mayor will be accompanied by 101 Dalmatians, Cruella De Vil, a Dalmatian mascot, a Jollyes mascot, Local Rotherham ‘Ambassa-dogs’ Fenrir and Daisy and the store team.

Two charities have been chosen and will be at the store fundraising on opening day are Sheffield Retired Greyhounds and Adoptapaws UK.

The firm says that the new store has created ten new jobs.

Regional manager Kerry Midgley said: “As a business that’s potty about pets, there was only ever going to be one theme for the opening of our 101st Jollyes store - 101 Dalmatians!

“We can’t wait to open our doors and would love to see Rotherham families bring along their Dalmatian dogs, or even Dalmatians toys, and enjoy a packed weekend of entertainment!”

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At Parkgate Shopping, wilko is set to reopen its Rotherham store on March 29.

The Range agreed a deal to buy the British high-street retail chain's brand, website and intellectual property after wilko fell into administration.

Opening in the same unit as before at 9am, the store will offer customers all the essentials needed to get their home and garden jobs done – great value wilko own-brand products, alongside popular named brands.

The first 50 people to enter the new store will get a goody bag.

The Rotherham site is one of the brand’s new concept stores and is among the first to open this year ahead of a continued roll-out of further store openings. When staffing the new store, priority was given to ex-wilko team members.

Ben Exall, Chief Digital Officer at wilko, said: “We’re delighted to see the return of wilko to the high-street in Rotherham. The team and I anticipate a great response from locals and visitors who are looking for all the products they need to get their home and garden jobs done.”

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News: Is wilko returning to Rotherham?

Having crashed into administration last year and closed all of its stores, including two in Rotherham, could the discount retailer's new owners be reopening a wilko store in the borough?

The British high-street retail chain was founded in 1930 sells homeware and household goods. The group, with headquarters in Worksop, Nottinghamshire, had 400 stores across the UK and approximately 12,500 employees.

Administrators were called in after it was hit by incredibly challenging trading conditions, both throughout the pandemic and more recently as it has felt the impact of the cost of living crisis, resulting in increasing cashflow pressure and a deterioration in trading.

A deal to save hundreds of stores fell through and instead, B&M was reported to be acquiring 51 former wilko store premises and Poundland owner Pepco is taking on the leases of up to 71 stores.

The Range agreed a deal to buy the Wilko brand, website and intellectual property.

Now bosses at The Range have begun a revival of the wilko name with the reopening of stores, and recruitment has begun for a wilko store in Rotherham.

Posted online by The Range, but marked "wilko", the firm is recruiting for a number of roles, including store manager, assistant manager, retail assistants, warehouse and cleaning roles. The company says that it is planning to recruit up to 80 local team members per store.

The Range currently has a Rotherham store in Parkgate. wilko stores that closed last year were based at Cortonwood and Parkgate.

As reported by Rothbiz, Rotherham Council acquired the building at 4 Corporation Street in January 2023 to prevent it from becoming a long-term empty building, after wilkos closed the store. It has since been demolished.

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Alex Simpkin, CEO of CDS Superstores, trading as The Range and wilko, said; “For the majority of its 93 years, wilko was an incredibly successful business that gave its customers exactly what they needed to get their home and garden jobs sorted. It was their advanced own-brand capabilities that encouraged us to invest in the brand and wilko.com and, we’re excited to now be selling wilko products online once more and across our 200 stores network.

"The public reaction to the loss of wilko stores was undeniable. It’s clear that there’s a huge love for wilko and we’ve seen an encouraging demand for the return of its own-brand products. That’s why we’ve taken the decision to reintroduce wilko back to many of the high streets and communities that it used to so proudly serve.

“Our team from wilko that joined us through the acquisition has shown true resilience, they’ve set to work to integrate the best parts of wilko into The Range’s operational systems. We’re expanding that team every day with new wilko hires and can’t wait to extend that back out to local communities.

“We’ll endeavour to give ex-wilko employees priority as a part of the recruitment process for the new stores.”

Under new owners, wilko recently opened its first three stores in Plymouth, Luton and Exeter.

Simpkin added: "This initial rollout is only the beginning for our plans for revitalising the wilko brand on the nation’s high streets and retail parks, and we’ll be announcing further store launches and re-openings throughout 2024.”

wilko website

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News: Logistics firm in administration

A Belfast-based third party logistics operator that only expanded into Rotherham last year has gone into administration.

Headquartered in Belfast and with facilities in Warwickshire, Rotherham and County Antrim, Selazar is a third party logistics (3pl) operator providing e-commerce fulfilment services, primarily for medium-sized and bespoke retailers throughout the UK.

Stuart Irwin and David Pike from Interpath Advisory were appointed joint administrators to Selazar Limited on 21 September 2023.

Admomistrators said that, in common with a number of other companies across the e-fulfilment sector, in recent times Selazar had seen significant inflation across its fixed cost base. This, coupled with the highly competitive nature of the market, had led to liquidity challenges.

In response to mounting cashflow pressures, the directors sought to explore their options including marketing the business for sale on an accelerated business. However, with no solvent outcome available, the directors took the difficult decision to seek the appointment of administrators.

Immediately following their appointment, the administrators sold the company’s assets, including its Intellectual Property and the Selazar trading platform, to Petra Financial Technologies LLC and MPN Technologies Ltd, entities within the Petra Group associated with the incumbent lender.

The business ceased to trade on the appointment of the joint administrators and the majority of the company’s 54 staff have been made redundant. Customers’ stock is currently held in warehouses formerly used by the company.

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Stuart Irwin, managing director at Interpath Advisory and joint administrator, said: “The logistics and e-fulfilment sector is currently experiencing a number of headwinds including rising costs and softening demand in the wake of fragile consumer confidence.

“Due to the cessation of trade and the sale of the assets, no further orders can or will be fulfilled by the Company, its warehouse partners or the purchaser. Customers are therefore advised to contact our team as a matter of urgency to make arrangements for the collection of stock.”

Irwin added: “As a matter of priority, we will also be providing support to those members of staff impacted by redundancy, including providing them with the information required to submit claims to the Redundancy Payments Office.”

Selazar opened a new 26,000 sq ft warehouse operation at Hellaby in Rotherham in October 2022. Operated in partnership with business processing outsourcing firm, Parseq, the aim was to increase its reach across the north of the UK. Selazar said at the time that up to 50 local jobs could be created as a result of the warehouse opening.

The business was founded in Belfast in 2018 and secured £20m from a large global investment group in 2021 to help the company to fast track its global expansion.

Selazar website

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News: Closure date for remaining Rotherham Wilko store

The administrators of discount retailer, wilko, have confirmed when its remaining store in Rotherham will close.

The British high-street retail chain was founded in 1930 sells homeware and household goods. The group, with headquarters in Worksop, Nottinghamshire, had 400 stores across the UK and approximately 12,500 employees.

Jane Steer, Zelf Hussain and Edward Williams of PwC were appointed as Joint Administrators of Wilkinson Hardware Stores Ltd, wilko Ltd and wilko.com Ltd after it was hit by incredibly challenging trading conditions, both throughout the pandemic and more recently as it has felt the impact of the cost of living crisis, resulting in increasing cashflow pressure and a deterioration in trading.

With administrators investigating a potential sale, an offer being explored for the sale of hundreds of stores as a going concern fell through, leading to their closure being confirmed.

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The 20,000 sq ft wilko store at Parkgate Shopping is set to have its last day of trade on October 8.

It follows on from the store at Cortonwood Shopping Park, which is in the Rotherham borough, which closed on September 14.

Rival retailer B&M is reported to be acquiring 51 former wilko store premises and Poundland owner Pepco is set to take on the leases of up to 71 stores. The Rotherham stores are not on the list of those taken on by Poundland, and the B&M deal has not yet been detailed further.

The Range agreed a deal to buy the Wilko brand, website and intellectual property.

Nadine Houghton, GMB National Officer, said: “Wilko should have thrived in a bargain retail sector that is otherwise strong, but it was run into the ground by the business owners.

“Money was siphoned out of the business for dividends, warnings about what needed to be done to save the business were not heeded and advice around what the business to do to thrive was not listened to.

“No worker caused the downfall of Wilko. But they will be the ones who will suffer – all as the owners get off scot-free. GMB will not stop campaigning for the owners of this debacle to be held to account.”

Rothbiz revealed in 2014 that wilko was set to take a large unit that was vacated by electrical retailer, Comet at Parkgate Shopping. At the time, an agreement was reached with Rotherham Council and the retailer that would see the town centre store staying open for at least five years if plans for Parkgate were approved.

In 2022, even before giong into administration, the wilko on Corporation Street closed down. To aid town centre regeneration, Rotherham Council acquired the empty unit and the area has been earmarked as the potential location for a new theatre.

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News: Rotherham Wilko store to close this week

After a purchase of discount retailer, wilko, fell through, the administrators have confirmed when stores will close, including one in the Rotherham borough.

The British high-street retail chain was founded in 1930 sells homeware and household goods. The group, with headquarters in Worksop, Nottinghamshire, has 400 stores across the UK and approximately 12,500 employees.

Jane Steer, Zelf Hussain and Edward Williams of PwC were appointed as Joint Administrators of Wilkinson Hardware Stores Ltd, wilko Ltd and wilko.com Ltd after it was hit by incredibly challenging trading conditions, both throughout the pandemic and more recently as it has felt the impact of the cost of living crisis, resulting in increasing cashflow pressure and a deterioration in trading.

With administrators investigating a potential sale, unions were informed by PWC this week that a previous offer being explored for the sale of hundreds of stores as a going concern had fallen through.

It means that all wilko stores are expected to close by early October.

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The wilko store at Cortonwood Shopping Park, which is in the Rotherham borough, has been given the last day of trading as Thursday September 14.

The store was one of a number of national retailers to open in 2017 where a vacant warehouse was demolished and replaced by 11 new retail units and a restaurant totalling 79,750 sq ft. The £36m retail development saw over 200 jobs created.

Since the development was completed, the units formerly occupied by Outfit New Look have been combined to create a new home store and garden centre for B&M - a retailer reported to be acquiring 51 former wilko store premises.

Despite another update today, the wilko store at Parkgate Shopping has not yet been given a closure date.

Andy Prendergast, national secretary of GMB Union, said: “GMB Union will continue to support our members through this process and will fight to ensure they are consulted as per the law and receive every penny they are entitled to.

“We will fight to ensure people are held accountable for this situation for the simple reason our members deserve so much better.

“GMB will not forget the incompetence that has led to this collapse and will we not forget the dividends paid to the millionaires who gambled workers jobs on their whims.“

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News: Post COVID drop in sales sent Rotherham bike retailer on path to administration

Following a relative boom period during COVID as people rushed to buy bikes, a slump in sales led to cashflow problems at Rotherham-based retailer, Planet X.

Rothbiz reported in June that Planet X Limited was sold in a pre-pack deal to Winlong Garments Limited, a company funded by Baaj Capital LLP. The move saw all 33 employees transfer to the purchaser as part of the sale.

Founded in Sheffield and now based in Aldwarke, Rotherham, the business has been designing and building road, gravel and mountain bikes for over 30 years, under brands including Planet X, Holdsworth, On-One and Titus. In addition, the company sells a range of clothing and accessories via its online store. In 2020, Planet X’s employees acquired the business from its founders and set up an Employee Owned Trust (EOT).

Administrators, Interpath Advisory, have now had their proposals accepted by creditors.

One of the largest creditors was Santander who funded the company through a term loan and a trade loan and their total indebtedness was £6.26m. Administrators anticipate that the bank will receive a partial dividend.

However, the administrators add that it is highly unlikely that there will be a dividend to preferential creditors and unsecured creditors. Documents showed £1.8m owed to unsecured trade and non-preferential creditors.

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The report explains: "The company performed strongly throughout COVID-19, growing its revenue to £19.1m and achieving a gross profit margin of 28% during FY21. Customer demand in FY22 and FY23 reduced, following the end of COVID-19 national lockdowns and reduced consumer confidence generally.

"In August 2022, the business experienced cash flow pressure and Interpath conducted an independent business review, following an introduction from Santander.

"The company continued to make losses and, despite ongoing discussions, had been unable to secure additional finance. Accordingly, Interpath was engaged on 20 April 2023 to undertake an Early Options process with the aim of exploring a potential sale of the business or to obtain external investment.

"Following an extensive marketing process over seven weeks, which generated significant interest from financial and trade investors, the company received three offers, all on an insolvent pre-pack basis."

Documents show that there were 20 expressions of interest and then two offers came from financial investors (on a business and assets basis) and one came from a "trade" investor (on a break-up basis).

A sale of the business and assets to one of the financial investors, Winlong Garmets Ltd, for a total consideration of £535,000 was considered to represent the best outcome for creditors.

Planet X's stock alone had a Net Book Value of over £3m.

Planet X website

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News: Jobs saved as Rotherham bike retailer sold in pre-pack deal

The future of independent British bicycle designer and retailer Planet X Limited has been secured following a sale of the business and its assets to Winlong Garments Limited, a company funded by Baaj Capital LLP.

Founded in Sheffield and now based in Rotherham, the business has been designing and building road, gravel and mountain bikes for over 30 years, under brands including Planet X, Holdsworth, On-One and Titus. In addition, the Company sells a range of clothing and accessories via its online store.

The company had performed strongly during the COVID-19 pandemic, but had since experienced a dampening of demand. The impact of this on cash flow, coupled with supply chain issues, prompted the directors to explore sale, refinance and investment options.

In 2020, Planet X’s employees acquired the business from its founders and set up an Employee Owned Trust (EOT).

Following a seven week sales process that generated significant trade and financial investor interest, the business and assets were sold via a pre-pack transaction to Winlong Garments Limited. Howard Smith and Rick Harrison from Interpath Advisory were appointed joint administrators to the Company prior to the transaction completing.

All of the Company’s 33 employees have transferred to the purchaser as part of the sale.

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Howard Smith, managing director at Interpath Advisory and joint administrator, said: “Planet X has grown over the years to become a well-respected and well-loved name in the cycling community, so we’re pleased to have been able to conclude this transaction which will see the business continue to trade and, importantly, which safeguards the jobs of the Company’s workforce. We wish management and the new owners all the very best for the future.”

Jas Singh, owner and director of Baaj Capital said: “This exciting acquisition accelerates Baaj Capital’s plan to invest across a wide spectrum of diverse business opportunities; the retail sector, with both online and bricks and mortar sites, being only one area of interest.

“Baaj Capital has actively funded the acquisitions of both distressed and solvent companies through many sectors over the recent past. Planet X incorporates both specialist production and innovative design, with a reputation for quality and finish, and represents an exciting addition to the businesses trading with Baaj Support. Our thanks to the Interpath team and Company Management for their help in delivering this project.”

Richard Mostyn-Jones, Planet X CEO, said: “I am delighted to have secured the future of Planet X and the team here, with this transaction. Baaj Capital is a very entreprenurial organistion with vision and values aligned with our own. We look forward to further building on our heritage and expertise and continuing to supply the cycling community both here in the UK and across the globe.”

Originally founded by keen triathlete Dave Loughran in the 1990's, the founder returned as CEO in 2016 and set the company on course for employee ownership, inspired by Sir Hugh Facey of Sheffield-based Gripple. Planet X previously had warehouse space at Templeborough before moving to Aldwarke.

Planet X website

Images: Planet X

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News: Rotherham furniture manufacturer packs in following economic downturn

A Rotherham-based furniture manufacturer was placed into administration after suffering from significant losses and a historic under investment in machinery. It had around £2.5m in debts.

Addspace Furniture Ltd was based at 85,000 sq ft premises in Hellaby and supplied domestic flat-pack or contact furniture to high street retailers such as Argos.

Administrators were appointed in January 2023 and 62 employees have been made redundant.

A report filed by administrators, Kroll, showed that the company posted significant losses for the past few years. Accounts show a loss before tax in 2021 of £432,437 and £369,259 in 2020. Directors attributed this as a direct result of the economic downturn in the UK, reduced customer orders, together with lower margins resulting from cheaper overseas competitors entering the UK market.

Administrators explained that "as a result of the losses, HMRC liabilities and trade creditors had been stretched. Repayment plans were put in place with these Creditors in order to improve the short-term cash flow of the business whilst trade performance initiatives were undertaken."

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The report adds that: "The Company historically suffered from under investment in new plant and machinery which in itself compounded the Company's problems of a deteriorating cash position. Regular machinery breakdowns disrupted sales activity and customer confidence. The majority of the plant and machinery needed modernising to benefit from more complex cutting and finishing to existing product lines, as well as adding new product offerings to the Company's customers. New technology would also have significantly reduced the time taken to manufacture many of the customers product lines.

"In order to invest in new technology and reduce the accruing creditor arrears, the Directors looked to secure investment from outside sources. An investment of £250k was introduced into the Company in February 2022 from one of the customers, Accentuate Group Limited, in exchange for 25% shareholding in the Company. These funds were ultimately utilised to fund restricted trade credit facilities and therefore the Company was unable to upgrade any of its machinery.

"The Directors went back to the market during November 2022 seeking further investment to provide additional working capital and capital expenditure funding. Whilst there were several parties willing to look at the opportunity, no additional funding was obtained."

Kroll undertook work to find investment, or a buyer for the company and despite ten parties signing non-disclosure agreements, no offers were forthcoming and options to resuce the company were exhausted. Trading ceased at the end of February.

Lender, Close, has been repayed in full after chasing debts but the company's bank, HSBC, may struggle to be repaid for its Coronavirus Business Interruption Loan and other debts.

In total, unsecured creditors totalled over £2m, with HMRC also owed around £500,000. Administrators say that as there has been no sale or investment, "it is not anticipated that there will be sufficient realisations to enable a distribution to the unsecured creditors of the company."

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News: "Data irregularities" led to Rotherham training provider going into administration

A national training provider based in Rotherham called in the administrators after the Government withheld its funding.

Bosses at Lifeskills initially disputed a claim from the Education and Skills Funding Agency (ESFA) over "data irregularities" but a suspension of £1.2m of funding caused serious cashflow issues. The agency has since asked for over £1.5m to be returned.

72 people were made redundant, with hundreds of learners also affected.

LifeSkills Solutions had its head office in Rotherham with other sites in Basildon, Lowestoft, Leeds and a fifth centre due to open in Sheffield this year. The company delivered Study Programme and Traineeships for over 1,000 learners per year across a wide range of vocations. It celebrated its 20th anniversary in April this year, having worked with over 22,000 learners since it’s formation.

Rated good by OFSTED in its most recent report, the company was profitable and had a turnover close to £5m for the year ending March 2022.

A report from the administrators of Lifeskills, Begbies Traynor, showed that problems arose when the ESFA appointed auditors at KPMG to conduct a regulatory funding audit at the company in March 2022.

The report states: "The audit resulted in a number of queries and concerns raised by the ESFA in relation to data irregularities. The Company entered into communication with both KPMG and the ESFA in respect of these queries in order to agree a suitable timeframe for a meeting to address the same.

"On 29 July 2022, the Company received a suspension letter from the ESFA which suspended all future funding whilst they completed an investigation into the Company and the aforementioned data irregularities.

"Consequently, the Company instructed solicitors, CMP Legal Limited, to review the position and issue a response to the ESFA, requesting a full breakdown of the audit findings.

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"As a result of the funding being suspended from the ESFA, the Company had withheld funding in excess of £1,200,000 which was causing significant cashflow problems for the Company.

"In response to this, the directors of the Company sought advice from Begbies Traynor on the Company's financial position. Begbies Traynor attended an initial meeting with the directors on 3 August 2022. At this point, the directors had disputed the concerns in respect of the data irregularities which arose as a result of the funding audit completed by KPMG and had instructed solicitors. Although the withheld funding was having a negative impact on cashflow, the directors were hopeful that the position could be resolved and forecasted that the Company could continue to trade until October 2022 to allow sufficient time for this to happen."

In September the audit findings were sent to the company and, with payments still suspended, the ESFA issued an invoice to Lifeskills which detailed a claim for over £1.5m.

Keeping the business trading while a buyer was found was discounted by the administrators after it assessed that there was "no gaurantee of reaching a resolution with the ESFA."

A pre-packaged sale of the business, which could have facilitated 72 jobs being saved, was also blocked.

There was substantial interest in the business from alternative learning providers. 23 enquires were received form interested parties and 15 went on to sign Non-Disclosure Agreements.

The report explains: "On 11 October 2022, the directors and proposed administrators attended a virtual meeting with the ESFA to discuss the interested parties. The ESFA initially advised the directors and proposed administrators that they would consider funding a purchasing entity however, when approached by various interested parties, the ESFA retracted this consideration given the unresolved issues with the Company and consequently, no formal offer to purchase the business and assets was received and a pre-packaged sale was not a viable option. Therefore, the directors proceeded with placing the Company into administration by signing the relevant appointment documents."

Assets, including its Enterprise House HQ in Rotherham, are currently being sold off. Major creditor, Barclays Bank is hoping to recoup money from the sale. Other creditors will need to wait and see what money is left over from the sale of any assets.

Begbies Traynor website

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News: Scottish producer pounces for Rotherham popcorn maker in pre-pack deal

An independent popcorn manufacturer based in Rotherham has been bought out of administration in a pre-pack deal.

The 51 employees at SY Foods have been transferred under TUPE to the new owners - Taylors Snacks Ltd (previously Mackie's at Taypack Ltd).

SY Foods, founded in 2019, manufactures and supplies popcorn for a range of retailers and wholesalers. It was created in 2019 as a special purpose vehicle for the purchase of the business and assets from the administrators of Tommy Tucker Ltd which expanded to North Anston in 2016 but was downed by a voluntary product recall that resulted in significant losses, pressure on working capital and ultimately, insufficient further funds.

According to a report from administrators, Mazars, the 2022 administration was due to the impact of Brexit, COVID-19 and a recent significant increase in raw material and utility costs that adversely impacted the company's profitability and resulted in cashflow challenges.

Mazars were appointed on September 8 and a review concluded that there was "no reasonable prospect of rescuing the company in its existing form as a going concern due to the level of historic liabilities and reduction in margin directly attributable to the increase in the costs of raw materials and utilities as a consequence of Brexit, the coronavirus pandemic and the recent war in Ukraine."

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Historic liabilities included finance facilities provided by Close Brothers relating to invoicing and the purchase of assets in 2019. These liabilities totalled over £1m and put off a potential buyer which was sought before administration.

The company had also entered into a time to pay arrangement with HMRC who came close to submitting a winding up petition in a bid to recover approximately £500k relating to PAYE, NIC and VAT.

A pre-pack sale was launched which would see the company wound up and the business and assets sold.

18 parties were interested in the business and its assets and four bids were submitted to the administrators.

Taylors Snacks Ltd was successful with a bid of £700,000.

The acquiring company was founded as Mackie’s at Taypack Ltd in 2009 as a joint venture between Perthshire potato farmers, the Taylor family, and Mackie’s of Scotland, renowned for their luxury ice cream. The Taylor family successfully acquired the ownership of the company following a buy-out earlier this year and a rebrand to Taylors Snacks, is underway.

Taylors’ popcorn will be produced at South Yorkshire Foods’ existing factory in Rotherham, which uses traditional means of cooking popcorn in large kettles.

The acquisition will also see Taylors Snacks takeover the production and distribution of South Yorkshire Foods’ renowned ‘Big Night In’ range, a popular popcorn brand listed in the likes of ASDA, Iceland and B&M to name a few.

James Taylor, Managing Director of Taylors Snacks Ltd, said: “The addition of the popcorn manufacturing business makes for a really exciting time to be at Taylors. South Yorkshire Foods produces a high-quality product packed with flavour, something we pride ourselves on at Taylors Snacks.

“The new business move will not only add an array of dedicated, talented staff, it will also add to our ever extending range of products. It made sense right away.”

The sale included all the financed assets having their finance paid and Close Brothers agreed to the deal. Secondary preferred creditors, such as HMRC, were expected to receive 50p/£ but unsecured creditors are expected to receive nothing on their debts which totalled over £600,000.

SY Foods website
Mackie's at Taypack website

Images: Mackie's / Facebook

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News: End of the line for Rotherham broadband firm

Rotherham-based Origin Broadband has become part of TalkTalk following a sale after the telecoms business crashed into administration.

Launching in 2011, Origin developed its own infrastructure and hosted the sixth largest broadband network in the UK. Supplying phone and internet services to businesses and homes across the UK (with around 70,000 customers), it had premises in Rotherham town centre.

Gareth Harris and Jamie Miller of RSM Restructuring Advisory were appointed as joint administrators on September 24 2021.

A deal has been struck for Origin's customers, and around 100 staff, to move over to TalkTalk, the UK's leading value for money consumer and B2B telecoms provider, which is based in Salford.

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Originally based in Doncaster, Origin relocated with much fanfare to Manvers in Rotherham in 2018. Having posted a full year loss to March 31 2018 of £7m, funding of £6.75m was secured from investors during and after the financial year to return the business "to a positive net asset position combined with increased cash funds."

Hit by high costs and bad debts, directors were then forced to secure a Company Voluntary Arrangement (CVA) with its creditors in order to keep trading and the firm moved its address to the Old Town Hall in 2019.

Gareth Harris, RSM restructuring advisory partner and joint administrator, said: "In a very competitive market Origin had built a substantial customer base, which resulted in considerable interest in the business. It is therefore pleasing to announce the sale to a larger competitor ensuring continuity for Origin's customers and staff."

Last year, Origin directors established Consumer Choices Ltd at Manvers - a "comparison partner" for broadband and energy deals in the UK.

Origin Broadband website

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News: JTF closes after sale falls through

JTF Mega Discount Warehouse has closed its stores, including one in Rotherham, having collapsed into administration.

Established over 40 years ago, and with a recent turnover of circa £60m, JTF had been struggling to manage debts accrued as a result of the worsening retail climate and excessive head office costs.

In early 2020 the business was acquired by Arthur Harris who immediately implemented a restructuring plan which significantly reduced head office costs. However, he also recognised that the business could not survive with the high level of legacy debts.

The company secured a CVA (Company Voluntary Agreement) with creditors that would enable JTF Wholesale to continue to trade, despite it being during lockdown in the COVID-19 pandemic.

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This year, the Nottinghamshire-based, forty-year-old retail chain had been looking for a buyer and issued a notice of intention to appoint an administrator. Instead it collapsed at the end of July, resulting in the closure of all stores, including the one at Catcliffe, and the loss of around 500 jobs.

A statement issued on behalf of the company said that the pandemic had played a significant role in its demise, with the forced closure of stores wiping out fireworks and Christmas sales which were ‘two of the largest seasonal items for JTF’.

Around 100 workers are set to take legal action against the retail consortium after receiving notice that they had been made redundant with immediate effect after a deal for the sale of the business fell through.

National law firm Simpson Millar says it is now in the early stages of investigations to enable appropriate legal action to be brought to secure what is known as a Protective Award on their behalf for the company’s failure to properly consult staff regarding the mass redundancies.

Damian Kelly, head of employment law at the firm, said: “The current situation is making it difficult for many companies across most industries and it is no surprise that retail giants – and particularly those that are so reliant on physical footfall - are being significantly impacted by the coronavirus pandemic.

“Sadly in this instance we understand that there had been a buyer for the business, but that the sale will no longer be taking place. As a result, the number of employees who are facing redundancy is really quite significant.”

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News: Rotherham glazing firm undone by problems with major projects

The reasons why cracks started to appear and Facade & Glazing Solutions UK Ltd (FGS) ceased to trade have been revealed by the administrators.

Problems with major projects caused cashflow issues, and when a lending facility expired, the Rotherham-based firm went into administration at the start of 2020.

Employing around 200 staff and originally part of a large French multinational company, it rebranded from Sologlas in 2012 and brought together three separate operating divisions into its 65,000 sq ft premises at Manvers in Rotherham in 2011. In 2018, CoBe Capital, acquired the Glassolutions Installation business of the Saint-Gobain Group.

Anthony Barrell and Rajnesh Mittal of FRP Advisory LLP, were appointed as joint administrators on January 6. In their documents filed with Companies House it shows that following the 2018 acquisition, the management reviewed the trading activities of the business and decided to close the insurance arm and the regional projects business based in the south.

The documents state: "However, despite the refocus of trading activities, the company continued to experience cashflow pressure primarily due to: delays and issues with major projects acquired from Saint Gobain Glass, together with new major projects taken on by the company resulting in reduced profit margins; reducing major project work as the company did not win new tenders; increasing creditor pressure given it was a new company."

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The cash position worsened and directors sought funding but none could be secured. In October 2019, Vanadium, a connected party set up by the ultimate owners to lend funds, provided a £1.5m working capital loan. Despite the new funding, the company continued to suffer cashflow pressures.

A turnaround plan was devised but it was apparent that the company would still be loss making, even with the loan and a radical plan to cut costs and make a number of redundancies.

Workers found out over the Christmas shutdown that the firm would be going into administration. Most employees were made redundant.

At the start of February it was announced that Alucraft Systems, Ireland's leading designer, manufacturer and installer of architectural glazing systems, had acquired certain assets including the fabrication facility in Rotherham. The documents show that a deal worth £250,000 secured the regional projects, and repairs and maintenance divisions.

The major projects division was not acquired and leaves the administrators with a number of challenging contracts.

With assets available of just under £4m and creditors owed some £9.5m, many will be left out of pocket. Unsecured creditors totalled £6.7m and redundancy pay totalled £2.4m.

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News: Jingye completes acquisition of British Steel

Jingye Group, a leading Chinese steelmaker, has completed the acquisition of British Steel's UK and Netherlands assets from the Official Receiver.

In May 2019 the High Court ordered British Steel Limited into compulsory liquidation. Ir was created when Greybull Capital bought the Scunthorpe-based Long Products Europe business of Tata Steel in 2016.

With its main steelmaking site in Scunthorpe, British Steel Limited moved its research and development operations to the Advanced Manufacturing Park (AMP) in Rotherham in 2018.

Assets included in the transaction include British Steel's steelworks at Scunthorpe and UK mills at Teesside Beam Mill and Skinningrove, as well as subsidiary businesses FN Steel in the Netherlands and TSP Engineering.

Jingye has pledged to invest £1.2 billion to place the business on a more competitive and sustainable footing. Jingye plans to return the company to industry comparable margins within five years.

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Jingye Group CEO, Li Huiming, said: "It has not been an easy journey since we first announced our intentions in November but the longer I have spent in Scunthorpe, the more I have come to believe in the successful future of these steelworks and the employees that have made them famous throughout the world. Together, we can forge a new partnership that will mark the beginning of a new illustrious chapter in the history of British steelmaking."

British Steel CEO, Ron Deelen, added: "This is a momentous day for our business, and I’d like to thank everyone for their dedication during a challenging year. I’m confident we'll seize the incredible opportunity Jingye have given us to build on 150 years of heritage, and further cement British Steel’s reputation as a manufacturer of world class steel."

The completion secures the future of approximately 3,200 jobs and follows the agreement of new terms with customers and suppliers.

Business Secretary, Alok Sharma, said: "The sale of British Steel represents an important vote of confidence in the UK's steel industry. It also marks the start of a new era for those regions that have built their livelihoods around industrial steel production.

"I would like to pay tribute to everyone who has been involved in getting this deal over the line, in particular to British Steel's workforce for whom I recognise the uncertainty will have been challenging.

"I also want to reassure British Steel employees who may be facing redundancy that we are mobilising all available resources to give immediate on the ground support and advice to those affected."

British Steel Limited website

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News: API acquired out of administration

API Foils Europe has been acquired out of administration, a lifeline for the operations in Rotherham.

API Group, a leading manufacturer and distributor of foils, laminates and holographics, went into administration at the start of 2020, less than a year since it expanded into larger Rotherham facilities.

Aldus Pty Limited has acquired the business of API Foils Europe (excluding its Dutch and Asian subsidiaries) creating a new company called API Foilmakers Limited.

Aldus is an Australian company with operations throughout Australia, New Zealand, Malaysia and USA. Included in the group is Milford Astor Foilmakers, which manufactures foil in Australia and distributes it worldwide.

Headquartered in Poynton, API Group and subsidiaries previously operated in Livingston and Rotherham, employing over 200 staff.

The new company will be led by Will Oldham, who was managing director between 2012 and 2015, and key members of the existing senior management team. Oldham, said: "I am delighted to be back leading the API's European Foil business which has been at the forefront of quality graphic stamping foils for many years.

"Joining the Aldus Group will give our team the financial strength and support to ensure the we can continue to deliver the highest quality product to our customers across Europe and the world. We are particularly pleased to be restarting the Scottish manufacturing facility and ensuring the continuing operation of our distribution hubs across Europe, delivering 160 jobs."

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Frank Floriano, CEO at Aldus, added: "API has long been viewed as a market leader in high quality foils and we were very pleased to acquire the business. We are committed to provide additional capital and support to ensure that API will continue to supply its existing customers and invest in the development of market leading products."

The group's materials provide exceptional brand enhancement for consumer goods and printed media worldwide. Products are used in packaging across a wide-range of industry sectors including premium drinks, confectionery, tobacco, perfumery, personal-care, cosmetics and healthcare.

Mark Gilbert, commercial director at API Foilmakers Limited, said: "We are delighted to be back in business and I would like to thank our customers for supporting all of our teams across our sites over the last few weeks and also those that helped us during the acquisition process. This support has just confirmed to us that this is a special business."

Taking an 18,000 sq ft warehouse and modern office space at Dinnington last year enabled API to create a new, larger UK sales and distribution facility.

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News: API Group placed in administration by US owners

API Group, a leading manufacturer and distributor of foils, laminates and holographics, as gone into administration, less than a year since it expanded into larger Rotherham facilities.

API Group is an indirect subsidiary of Steel Partners Holdings, a global diversified conglomerate that is listed on the New York Stock Exchange. The American investment firm has confirmed that it has placed the UK companies into administration.

Headquartered in Poynton, API Group and subsidiaries also operated in Livingston and Rotherham, employing over 200 staff.

The group's materials provide exceptional brand enhancement for consumer goods and printed media worldwide. Products are used in packaging across a wide-range of industry sectors including premium drinks, confectionery, tobacco, perfumery, personal-care, cosmetics and healthcare.

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On January 31, Colin Dempster and Robert Kelly from Ernst & Young were appointed as joint administrators with "the purpose of API Group's administration proceedings is to facilitate an orderly sale or wind-down of its UK. operations."

Taking 18,000 sq ft warehouse and modern office space at Dinnington last year enabled API to create a new, larger UK sales and distribution facility.

Bill Fejes, CEO of Steel Partners, said: "As previously disclosed, since early 2019, we have been working with the API Group businesses to assist in managing significant adverse change within their industries and the loss of major customers.

"Importantly, we expect that all our other business units will continue to operate as normal and will not be adversely impacted by the transition of the API Group."

API Group website

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News: Alucraft sees through plans to buy Rotherham glazing facility

Alucraft Systems, Ireland's leading designer, manufacturer and installer of architectural glazing systems, has acquired certain assets of Façade and Glazing Solutions (FGS) Limited, including its fabrication facility in Rotherham.

Earlier this month FGS called in administrators.

Previously known as Glassolutions as part of a French multinational, FGS specialised in conception, engineering and installation of glazed façades and building envelopes. Employing hundreds of staff, it rebranded from Sologlas in 2012 and brought together three separate operating divisions into its 65,000 sq ft premises at Manvers in Rotherham in 2011.

With offices and manufacturing facilities in Dublin and Tamworth, Allucraft has secured a deal for the facility and its assets after working with the former employees and administrator.

Alucraft said that it plans to reopen the FGS facility with an initial 19 employees. The ambition is to expand the workforce as Alucraft Group secures new work.

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The group, which has completed projects for Amazon, Lidl and LinkedIn, said that the addition of the newly acquired FGS facility will support its ambitious growth plans and provide a significant additional increased aluminum fabrication capacity.

Alucraft plans to further increase this capacity during 2020, to support the Group's existing operations. Overall, the aim is for the facility to become a centre of excellence for unitised façade fabrication alongside other fabrication activities. Furthermore, in addition to working on Alucraft's projects across the UK and Ireland, the facility will be made available to third parties on commercial terms.

TFounded in 1975, Alucraft was acquired by Elaghmore Partners, a UK-based private equity firm, in 2018.

John Foster, commercial director at Alucraft Systems, said: "This is a decisive and positive step for Alucraft. This sends a very strong message to the construction industry. We have added a fantastic facility, which will increase our operational capacity, allowing us to deliver larger and more complex projects. It will also create additional employment opportunities in the area.

"We have ambitious plans for the business, and are providing much needed capacity for façade design, engineering, manufacturing and construction in the UK. The combination of Alucraft and EAG builds our position as a market leader. We will continuously strive to innovate and improve our capabilities through collaboration across the Group, our customers and the wider market."

Alucraft website

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News: Rotherham glazing firm enters administration

It was meant to put the company in a strong position for growth, but a year and a half after being acquired by an American private investment firm, Rotherham-based Facades & Glazing Solutions UK Ltd (FGS) is in administration.

Previously known as Glassolutions as part of a French multinational, the company specialises in conception, engineering and installation of glazed façades and building envelopes. It rebranded from Sologlas in 2012 and brought together three separate operating divisions into its 65,000 sq ft premises at Manvers in Rotherham in 2011.

CoBe Capital, which specialises in the acquisition and operation of businesses where corporate parents are looking to divest operations that no longer fit with their core strategy, or are underperforming, acquired the Glassolutions Installation business of the Saint-Gobain Group in July 2018.

Anthony Barrell and Rajnesh Mittal of FRP Advisory LLP, were appointed as joint administrators on January 6.

As Glassoulutions, it delivered an annual turnover around £70m, and employed around 440 people.

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A year after the takeover, bosses said that FGS had completed more than 100 projects and has secured more than £40m of new projects in the year since it was divested from the Saint-Gobain Group. It was on target to break-even in 2020 and to achieve a turnover of £50m by December 2019.

The administrators will now look at options for rescuing the business and getting the best deal for creditors, such as financial restructuring, going through a company voluntary arrangement (CVA), or a sale of the business, in whole or part.

A new managing director for FGS was brought in by CoBe Capital during October of 2018. Dirk Jaspers was replaced by Ian Warren a year later. A new CEO, Craig McGilvray was appointed in March 2019.

FGS is no longer listed on the CoBe Capital website as being part of its portfolio.

FGS website

Images: FGS

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