Formation Asset Management seeks voluntary liquidation
AN asset management business spun out from Formation Group last year has been placed into a creditors’ voluntary liquidation.
Formation Asset Management, a Wilmslow-based business which was sold following the deal completed by the Manchester office of Gresham Private Equity to acquire the bulk of the Formation business, had been bought for up to £225,000 by two former employees, David McKee and Kevin McMenamin.
Formation said in December that the pair had acquired contracted client income streams in a deal where they would pay 1.5-times contracted income over three years, plus commission on new business.
However, the remainder of the Formation business, which is now largely a London-based property and construction firm, this morning informed the market that the Formation Asset Management had applied to enter into a creditors’ voluntary liquidation.
A statement issued by the Formation Group said that the board of Formation Asset Management had appointed Bucher Woods Corporate Recovery in relation to placing the business into Creditors Voluntary Liquidation, and that a meeting of creditors has been scheduled for September 14.
It added that group directors estimated that it “has no exposure to FAM”.