Pre-pack saves jobs at marketing agency

ADMINISTRATORS of Manchester-based agency Cube3 Marketing have sold the company back to its owners via a ‘pre-pack’ deal which has saved all 17 jobs.

Joint administrator Ben Woolrych of Baker Tilly’s restructuring arm led an accelerated sale process of the seven year-old business, attracting interest from over 20 different parties before agreeing a deal with its existing management, which was completed on February 17.

The company, which offers media agency, design, creative, digital and PR services, became distressed after winning several larger clients, which placed pressure on its working capital. It also took on extra costs following a move to new premises on Princess Street.

Mr Woolrych said: “Cube’s position was symptomatic of the predicament many businesses find themselves in when their client base diversifies and their working capital requirements are affected as a result.

“Fortunately there was a management team in place prepared to seek advice at the right time and, on this occasion, the sale of the business back to management was the best outcome for creditors and has ensured continuity for Cube’s clients and staff throughout the process.”

Cube3 managing director Karl Barker said: “It has been frustrating for us over the last 12 months. Our growth strategy, subsequent move of headquarters to central Manchester and a restriction in funding forced us to take this route.

“We have managed to secure a more suitable working capital solution following the deal and re-aligned our business strategy moving forward”.