72 jobs go at Stockport sportswear firm
MORE than 70 workers at a Stockport sportswear firm, which sponsors a number of UK rugby teams, have been made redundant after it fell into administration.
Canterbury Europe was forced to call in administrators from KPMG after been hit by tough trading and the weak pound.
The company is part of the New Zealand-based Canterbury Group which has become a global brand, and is unaffected by the administration.
The European business, which is based in Stockport, currently sponsors rugby union and rugby league clubs including the Scottish national team as well as London Wasps and Cardiff.
In recent years it has expanded into other sports including football, cricket and golf, and has sponsorship agreements with Portsmouth Football Club and Yorkshire and Hampshire Cricket Clubs.
Joint administrator David Costley-Wood and KPMG partner said all of the sponsorship contracts in Canterbury Europe have been terminated as a result of the administration, and the affected clubs will rank as unsecured creditors in relation to any amounts they were owed for the remainder of the contract.
Following the appointment of administrators, 72 out of the 86-strong workforce at the group, which distributes branded sports and leisurewear, were made redundant.
Mr Costley-Wood said: ““This administration has been the culmination of difficult trading, following a period in which Canterbury Europe had unsuccessfully tried to expand into new areas. The company has also been hit by the weakening of the pound, as it imports its goods from the Far East.”
He continued: “The European business will continue to trade under the administration whilst we try to find a buyer for the business and assets. The global brand and trademarks are not affected by the administration of the European business and we understand that the owners of the Canterbury Group are looking for a potential acquirer or new investor to lead the next stage of Canterbury’s development.”
Sonia McMahon and John Joyce at law firm Addleshaws are advising KPMG.
