Lancashire Tea strikes deal with RBS
LANCASHIRE Tea has taken a step closer to resuming production after administrators handling the business reached an agreement with Royal Bank of Scotland’s commercial leasing arm over a vital piece of factory equipment.
Last week the firm’s founder Paul Needham claimed RBS’s Lombard subsidiary was threatening to sink a buyout by selling off a production line after the Newton-le-Willows business missed its repayments.
The firm went into administration on November 11 but a private investor has agreed to back a buyout which would preserve some 40 jobs.
Mr Needham was seeking to block Lombard’s move with a court injunction but RBS said today it had reached an agreement with administrators at the accountancy firm Tenon.
In a statement the bank said: “After reviewing the case we have now agreed an alternative way to settle the long outstanding debt with the administrators on the machinery.”
It added: “We are absolutely committed to supporting viable businesses and recognise that sometimes a fresh pair of eyes can find a solution where one could not be found before. This is exactly why we became the first bank to offer a second opinion on decisions through our business hotline.”
Mr Needham confirmed Tenon had reached an agreement and were continuing to work on a sale of the business.
