Pre-pack sale of firm saves 37 jobs

A Lancashire manufacturer of materials for the wallcoverings industry has been acquired out of administration in a pre-pack deal which has safeguarded 37 jobs.

Joint administrators at business advisory firm FRP were appointed at Speciality Coatings (Darwen) yesterday (Wednesday, March 7) as a result of cash flow pressures.

Joint administrators Anthony Collier and Russell Cash immediately secured the sale of the business to Speciality Coatings Ltd (SLC) which is independently owned by the private investment firm, the HLD group of companies.

Collier said: “We have worked closely with the directors to explore all options but given the cash flow difficulties the company has experienced, a sale via administration delivers the best result for all stakeholders in the circumstances.

“Most importantly, this deal saves a significant number of jobs in the local area.”

David Myles, special operations director, at HLD, added: “SCL is a unique manufacturing business and we’re pleased to have secured an acquisition that not only safeguards a significant number of jobs, but ensures continuity of trade for key stakeholders.

“The business has supplied UK and European household brands for decades and we’re looking forward to continuing those long-term relationships with our valued customers.”

The business will continue to be led by managing director Paul Phillips, and will continue to trade from its existing site on Dewhurst Street in Darwen, near Blackburn.

FRP Advisory was advised on the sale of the business by Pinsent Masons.

HLD was advised by Addleshaw Goddard LLP.

Banking facilities were provided by Close Bros (Jeremy Bolton).