Cheshire hot tub company in the hands of joint administrators

A Cheshire spa company has been placed into administration.

Clever-Company, which is registered at Topaz House, St Michaels Industrial Estate, Widnes, was founded 30 years ago and specialises in hot tubs and associated accessories, as well as spa chemicals.

Its hot tub brand was CleverSpa, which was sold from the company’s website, and stocked in a range of well known high street retailers, including B&Q, Homebase and the Range.

The business said it boasted a 30-year history in design, manufacture and distribution, promising great innovation, thoughtful design and a commitment to delivering great value.

Its last accounts filed at Companies House, for the year to March 31, 2021, showed the company had net assets of £381,478, compared with net liabilities of £181,913 the previous year.

Its average headcount for 2021 was 30 staff, up from 18 in 2020.

One of the directors made an £850,000 working capital loan to the company, which had £750,965 of cash at the bank in 2021, an increase on the previous year’s level of £671,466.

However, the company is now being managed by Howard Smith and Richard Harrison of Interpath, who were appointed joint administrators on October 26, 2022.

They said, following increased demand for hot tubs during the pandemic, the company has experienced a softening of demand from retailers over recent months. This, coupled with recent investment in its cost base, led to the company experiencing significant pressure on cash flow.

After exploring options, the directors concluded that it was in the best interests of the company’s creditors for it to be placed into administration. Regrettably, a total of 25 members of staff have been made redundant following the appointment of the joint administrators with nine remaining to support the administration.

Howard Smith, joint administrator and managing director of Interpath Advisory, said: “The lockdowns of 2020 and 2021 saw a huge surge in demand for hot tubs, but unfortunately this demand has started to soften, not least in the wake of energy costs starting to rise.

“We will be providing assistance to those members of staff who have been made redundant and will also be seeking a buyer for the business and its assets. We advise any interested parties to contact us as soon as possible.”