Hughes buys Abbeycrest assets in pre-pack
Mr Hughes, managing director of Manchester-based Zeus Capital, has invested £1.5m to buy Abbeycrest’s assets from administrators Leonard Curtis in a personal capacity through two new bid vehicles, Chrysus Trading and Chrysus Holdco, of which he is listed as sole shareholder. The transactions have safeguarded 80 jobs.
Abbeycrest – which until recently was listed on AIM and headquartered in Leeds – went into administration on Tuesday after months of uncertainty regarding its funding position.
Chrysus Trading has bought both Abbeycrest’s wedding ring business Brown & Newirth, which is based in Hatfield Hertfordshire, and Chrysus Holdco its operations in Thailand.
Mr Hughes told TheBusinessDesk.com: “I am delighted to support the management team in this transaction and look forward to working with them to fund the businesses growth. As a direct result of the funding provided we have saved 80 jobs and the business now has a sound financial base on which to develop further.
“In addition I am actively looking for further funding opportunities.”
In a statement to the Stock Market Abbeycrest said: “The board understands that the joint administrators have sold the business and business assets of Brown & Newirth Limited to Chrysus Trading Limited and sold the shares of Abbeycrest Thailand Limited to Chrysus Holdco Limited.”
Last week Chrysus Holdco acquired the loans made to Abbeycrest by its junior creditors, Moorgarth Ltd and Michael Lever.
In addition it injected £780,000 to Abbeycrest, of which £480,000 will be used to redeem the debt owed to asset-based lender Burdale Financial, with the remainder being used as working capital for Brown & Newirth.
Prior to the administration this week Abbeycrest’s board said that it had held “intensive discussions” with Chrysus Holdco, but “it became evident that the only course of action available was for the board to place Abbeycrest into administration.”
Chrysus Holdco was advised on the deal by law firm Turner Parkinson. Addleshaw Goddard advised administrators Leonard Curtis
