Packaging manufacturer goes under – despite ‘overwhelming’ interest from potential buyers

Credit: Surepak

A packaging manufacturer has ceased trading – despite appointed administrators saying they were hopeful of a sale following “overwhelming” interest from potential buyers.

Nottingham-based Surepak has gone under, even after administrators from PKF Smith Cooper saying they received 96 expressions of interest in the firm. exclusively revealed that Surepak had called in administrators in February. The firm operated out of a 45,000 sq ft premises in Nottingham and employed 34 staff as of December 2022.

Administrators says that Surepak’s financial concerns became apparent during the global energy crisis when its electricity costs increased by more than 425%. This increase, coupled with the loss of two significant contracts, decreased the company’s turnover by around£1m, due to customers’ packaging requirements changing and the relocation of a customer abroad.

The company sought a buyer after sole director Stuart Yorston filed for administration on February 9. This was to safeguard the company’s business, assets, and employees from a winding-up petition served by a creditor, which was due to be heard on February 14.

Business recovery and restructuring partners Dean Nelson and Nick Lee from PKF Smith Cooper were appointed joint administrators on February 12.

Surepak continued to trade for the short term whilst in administration.

A statement from PKF Smith Cooper said: “Despite the optimum effort following a merger and acquisition process, and various offers being received, the sale progression has subsequently been unsuccessful, resulting in Surepak Limited sadly ceasing to trade on 10th May.”

Incorporated in 1991, the company has been trading for over 32 years, starting out as a distributor, before moving into manufacturing in 2005.

The statement added: “The administrators are disappointed with the ultimate outcome in not securing a sale of the business and assets as a going concern, however they would like to wholeheartedly thank the employees for their hard work and dedication, as well as customers for their continued support throughout this difficult process.”

Polypouch UK has bought Surepak’s order book. The company’s fixed assets, including plant and machinery, office equipment, and stock are available for sale.