Jobs saved as Derby firm sold out of liquidation
Some 14 jobs have been saved after a stricken Derby alarm installation company was sold out of liquidation.
Lucinda Matkin of LM Insolvency and Advisory was appointed liquidator of Manguard Electrical Security on 23 July 2018.
Manguard Electrical Security operated from Unit 3, Parker Centre, Derby providing alarm installation and monitoring services.
The had suffered as a result of the new GDPR regulations, which drastically reduced its marketing options. The directors explored other options prior to Insolvency, including a sale of business but this proved to be unviable given valuation reports and the company’s liabilities. As a result they chose a CVL (company voluntary liquidation) instead.
Despite the company going into liquidation, 14 of 16 jobs were saved and the business rescued in a sale of assets and customer contracts to Ideal Alarms of Ripley. The sale secured jobs for 14 of 16 employees, and the sale of customer contracts means over a 1,000 customers that had paid in full upfront for alarm and monitoring services will continue to receive this service for the remainder of their contracts.
Matkin said: “We are pleased to have secured a sale of the customer contracts whereby the purchaser has adopted the liability for ongoing service, resulting in continued service for 1,200 customers, instead of them becoming unsecured creditors in the liquidation.
“If there had been no sale the customers would have lost anywhere between on average £1,000 and £5,000 each, making them unsecured creditors in the liquidation, and would have no service for the remainder of their contract.”
