Debt management specialist bought out of administration by rival
Salford debt management firm MoneyPlus Group has bought Manchester-based Baines & Ernst immediately after it went into administration.
Anthony Collier and Ben Woolrych, partners at FRP Advisory were appointed administrators of the company.
The business and assets of Baines & Ernst were then sold, resulting in the transfer of all 80 staff and all its debt solution plans and customer data.
Baines & Ernst operated in the debt management market for more than 20 years providing debt advice to consumers across the UK and offering a range of debt management solutions including individual voluntary arrangements, debt relief orders and other strategies for debt consolidation or debt settlement agreements.
In August, 2016 Baines & Ernst was fully authorised by the Financial Conduct Authority (“FCA”), following the transition of responsibility for the regulation of consumer credit from the Office of Fair Trading.
Following FCA authorisation, the business faced rising costs and growth stagnated. While the underlying business was profitable, the business had incurred significant exceptional costs and a deteriorating asset based placed increasing pressure on bank facilities.
FRP said this resulted in unsustainable pressure on cash flow and ultimately the need to seek the protection of administration to allow for a more viable solution for the on-going business.
The company worked with advisors during the first half of 2017 to explore a range of options including seeking new investment or a sale of the on-going business in order to secure the needs of existing customers’ debt management plans, it said.
Collier said: “We are pleased to have found a solution that ensures continuity for the Baines & Ernst customers and secures the transfer of 80 Manchester jobs in the process.
“MoneyPlus Group is a long established, fully authorised, financial solutions firm that is ideally placed to take on the Baines & Ernst business. We wish the enlarged group all the success for the future.”
