Hawkins-Salmon sold on in pre-pack

A Cheshire entrepreneur who sold a business to Ensor Holdings two years ago has bought it back as part of a pre-pack deal.

Paul Ashley, who runs P & S Ashley in Sandbach, paid £300,000 for Ensor’s Hawkins-Salmon timber and fencing subsidiary which went into administration in March.

In 2007 Mr Ashley sold the freehold site, timber workshop and preservative treatment facility of his Sandbach Treatment Services to Ensor when the building products group wanted to relocate part of the Hawkins-Salmon business from Northamptonshire.

According to a creditors’ report by administrators at Begbies Traynor Hawkins-Salmon was profitable until 2008 when operational problems led to quality and service issues.

The situation worsened as the recession in the construction industry kicked in and the business soon racked up “significant trading losses”.

In December the Manchester-based building products group Ensor said the costs associated with the move – around £150,000 – had pushed the group into a loss. By March the directors had decided to call in insolvency practitioners from Begbies Traynor.

In the report the administrators said they were told of an offer from Mr Ashley which was quickly accepted. The administrators said: “Due to the current climate, and the risk in taking on a business of this kind, we believed it unlikely that any other offers in and around this value would be received.”

Hawkins-Salmon collapsed with debts of around £2m. Of this £1.6m was owed to Ensor Holdings, while £326,242 was owed to trade creditors.