Blackburn IT company saved through pre-pack

A Blackburn-based IT company which specialised in providing support to dental practices has been rescued by way of a pre-pack administration.

PRR Plus has been sold back to its management team for an undisclosed in a deal which preserves three-quarters of the company’s jobs and ensures it can continue to provide support to its base of around 500 customers.

The business had been owned by Paul and Pamela Rogers. Although it has been trading since 1997, this is the second pre-pack administration which it has undergone within the past three years.

Kevin Lucas of Manchester-based insolvency firm Lucas Johnson said PRR Plus had faced severe cashflow difficulties in recent months. He added that although pre-pack administrations can often be controversial as it involves a sale back to existing management, in this case the acquirer was unrelated to the current management team.

He said: “PRR has had its difficulties, but was beginning to work its way out of them. However, its lack of cashflow at critical times was its downfall.  

“Time was very tight here because of the lack of cashflow.  I’m really pleased that in an incredibly such short space of time we were able to not only secure several expressions of interest, but actually complete a sale to enable the business to be preserved, continuity to be maintained, and avoid the entire workforce being made redundant. 

“This is a great outcome for all concerned and will hopefully lead to a good return for creditors.”