Pre-pack deal saves nearly 50 jobs
A pre-pack deal with administrators has saved nearly all the jobs at refrigeration business Capital Cooling.
RCapital has retained ownership and the management team will stay in place after the company restructured for the second time in three years.
Joint administrator Carl Jackson, managing partner of Quantuma, said: “Unfortunately, Capital Cooling Refrigeration Limited is not the first casualty of the COVID-19 pandemic.
“The sectors which the business primarily works with – leisure, retail and hospitality – are amongst some of those hit hardest. This, coupled with the business not qualifying for any government support, made trading during this period difficult.”
The business will keep its site in St Helens, although is closing its Edinburgh head office and relocating that team to Livingston.
It has also pressed ahead with plans to open a 26,000 sq ft warehouse hub in Northamptonshire.
43 of the 47 employees have been retained by the new company, Beheren, which will trade as Capital Cooling. It has committed to honouring all orders and warranties.
Chief executive Steve Steadman said the pandemic hit “at the worst possible time” for the company, which was unable to secure support from either the UK or Scottish Governments.
He said: “The goal of this plan was to secure the long term future of the business and ensure job security for all members of the team. We have succeeded in doing so.
Although Capital Cooling was founded in Scotland in 1996, more than 80% of its deliveries are now to sites south of the border and the Kettering location is much better placed to serve its customers.
Steadman added: “While Capital Cooling will always have roots in Scotland it was clear to see that the operational side of the business was simply in the wrong part of the country.”