Sweet deal saves jobs

A long-standing North West sweet maker has been rescued out of insolvency by a Yorkshire firm, saving 38 jobs.

Accrington-based Stockleys Sweets, which was founded in 1918, has a turnover of £2m. It was a supplier to Woolworths, whose collapse last year, sparked the insolvency.

Its future is secure thanks to Leeds-based wholesaler Morris and Son.
Stockley’s produces nostalgic favourites such as pear drops, chocolate limes, barley sugars as well as traditional cinder toffee and fudges. 

Over the years, it has supplied many wholesalers and retailers but it was the collapse of Woolworths last year that ultimately led to the failure of its parent company Mr Lucky Bags in September.

Morris and Son said the acquisition, which was pulled together in just three days by corporate finance firm BTG McInnes, would strengthen its supply chain and broaden the range of products it can offer.

The deal, funded internally, sees an injection of working capital in addition to the undisclosed consideration paid for the business.

Andy Needham, managing director of Morris and Son, said: “Stockley’s has always been a very solid business that was unfortunately dragged into problems caused by the failure of its parent company.
  
“We saw a really good fit between our businesses and have been able to secure a deal with the administrators that saves all the jobs, helps us grow our business and creates more opportunities for Stockley’s too, so it’s a dream deal for us.”

This is the second North West deal Morris and Son has completed in just five months. In June the company saved six jobs when it bought Manchester-based cash & carry wholesaler and confectionery packing business Graham’s Cash & Carry.

Steve Roberts of BTG McInnes Corporate Finance.“The opportunity that Stockley’s presented was very attractive and the deal makes good sense for Morris and Son.”