Pre-pack deal saves family haulage business from administration
Family-run haulage business CIS Industrial has been acquired out of administration in a pre-pack deal, saving all 15 jobs.
Charles Brook and Allan Cadman, partners at insolvency firm Poppleton & Appleby, were appointed as the joint administrators of both companies on 10 August 2017.
The administration included both CIS Industrial Ltd and CIS Industrial Hire & Sales Ltd. Both are Batley-based family-run businesses, founded in the 1980s with premises in the Birstall area.
The companies suffered cash flow issues due to “restrictive historic finance issues” and were close to being wound up through the courts by HMRC.
The joint administrators at Poppleton & Appleby organised a pre-pack deal for both companies, where the purchasers are the existing family management team.
Joint administrator, Allan Cadman, said “It is gratifying to be involved in such a matter particularly in a week where there has been a media spotlight on family owned and run businesses.
“The deal not only saves the jobs of 15 people in the locality but provides continuity for customers and new opportunities for suppliers.
“The deal will ensure that the creditors’ position will be enhanced through this process as opposed to the winding up and shut down position which was narrowly avoided.”
