Pre-pack deal saves jobs at kitchen manufacturer

More than 30 jobs have been saved at a Bradford kitchen manufacturer Karmik.

The company, which was founded in 2013, suffered two bad debts in 2016 totalling almost £100,000. This led to “severe” cash flow problems and HMRC arrears.

Joint administrators Kelly Burton and Lisa Hogg of insolvency and business turnaround specialist Wilson Field were appointed to Karmik on 13 March.

Karmik, which traded as Designer Factory Kitchens, was acquired by Karmik UK in a pre-pack deal, with the existing management team continuing on.

The sale includes the business and the assets of the company based at Fairfax House in Drighlington.

Kelly Burton, director and insolvency practitioner at Wilson Field in Leeds, said: “DFK celebrated its 25th anniversary recently but as a result of suffering two significant bad debts found itself facing a cash flow crisis.

“After attempting without success to raise further finance, the directors sought advice and as a result of taking prompt action we have been able to save the DFK brand and all 36 employees’ jobs. As the jobs were transferred to Karmik UK, this alone saved over £44,000 in redundancy and wages claims.”

Managing director Mike Baziw commented: “It is very frustrating when events which are outside of your control threaten the very existence of your business and the jobs of a loyal workforce.

“Working with our advisors and staff, the future of DFK now looks very positive and we are in a position to offer our customers the same high quality of products and service.”

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