94 redundancies as administrators shut famous direct sales business

A Birmingham direct sales company for household goods has gone into administration.

Betterware has made 94 redundancies after tough trading conditions led to cashflow problems, forcing the 90-year-old company into administration.

The company is a sister company of Kleeneze, which was placed into administration on 12 April, one day before Betterware’s announcement. It moved from London to Birmingham in the 1980s.

The news comes after a petition to wind-up the business was made by HM Revenue and Customs earlier this month.

Joint administrator Claire Dowson, of Begbies Traynor, said: “It is very sad to see the demise of such a long-established business. Our aim was, of course, to find a purchaser for the business as a going concern in order to safeguard the jobs, but unfortunately, despite our efforts, this did not prove possible.

“We are now in the process of realising what assets we can in order to achieve the best possible returns for creditors.”