Stockport textile firm bought out of administration following collapse

Rick Harrison and Howard Smith from Interpath Advisory have today (March 3) been appointed as joint administrators of Stockport-based Creative Apparel Limited.

The company is a textile manufacturer in the fashion retail and workwear sectors, supplying a number of high profile online retailers.

It suffered trading losses in the wake of the COVID-19 pandemic, mainly due to production constraints from lockdown closures and subsequent social distancing restrictions.

In addition, sales to one of its significant customers reduced materially during 2021.

Also, the company had commenced construction of a new manufacturing facility in 2020, and experienced cashflow pressures as a result of increasing construction costs and project delays.

After reviewing funding options, including exploring options for a potential sale, it was concluded that it was in the best interests of the creditors for the company to be placed into administration.

Immediately following their appointment, the joint administrators sold the business and assets to a newco, Apparel Services Limited.

In addition, the company’s premises in Oakfield Road, Stockport, have been sold to a separate newco, Oakfield RD Limited, also owned by the same third party.

A total of 14 staff will TUPE transfer to Apparel Services Limited.

Rick Harrison, managing director at Interpath Advisory and joint administrator, said: “We’re pleased to have been able to conclude these transactions which safeguard the future of this innovative Stockport business, as well as preserving a number of jobs.”

The joint administrators were advised by Tim Taylor and Barry Davies at Addleshaw Goddard.