Surgicare sold for £40,000
A CREDITORS’ report shows that the business and assets of plastic surgery specialist Surgicare were sold out of administration for just £40,000 in October.
It was bought by The Hospital Medical Group, based in Bromsgrove, through a new vehicle, RAM1001 which has been renamed Surgicare Medical. The deal saved 37 jobs.
The Manchester company, founded in 1995 and owned by Mark Bury, Robert Baines and Charles McCollum, grew to become one of the leading cosmetic surgery brands with locations in Birmingham and London.
But high overheads left the business struggling to turn a profit. Management accounts included in the report show it made a post-tax loss of between £1.2m and £2.3m from 2007 to 2009 on sales of between £5.8m to £7.5m.
In May management acquired London-based Plastic Surgery Partners in the hope of driving turnover but trade declined in the autumn and advisers from Baker Tilly were called in who suggested the business should be sold or refinanced. A sale was agreed and days later RSM Tenon were appointed administrators.
The failure of the business left trade creditors owed £1.9m. The report shows customers paid deposits of nearly £400,000 for operations but The Hospital Medical Group has agreed to handle all outstanding procedures.
A company called Kwela Investments was owed £1.2m while HM Revenue & Customs was left with a liability of £181,000. The owners’ shareholdings had a nominal value of £9.2m.
