Pre-pack deal for greetings card business

Wakefield greetings card publisher Riverside Plus has been bought out of administration in a deal which saved 23 jobs.

The company had experienced cash flow problems after it had outsourced services to a field merchandising company which is said failed to deliver improvements and added to its cost base.

This became unsustainable and the business was forced to call in administrators.

Julian Pitts and Bob Maxwell of Begbies Traynor were subsequently appointed on 6 February.

The joint administrators agreed a sale of the business and certain assets to Riverside Greetings Ltd, with a director from the former business.

Joint administrator Julian Pitts commented: “Upon being appointed to advise Riverside Plus, our primary aim was to speedily find a purchaser for the business to enable it to continue trading – by quickly securing a sale we were able to avoid any disruption to customers or damage to the company’s reputation.

“The sale has not only provided the best possible return for creditors, it has also preserved all the jobs and, in the hands of an experienced director, it has a more secure future ahead.”