Pre-pack sale of manufacturer safeguards dozens of jobs

Enact Fund II, a UK special situations fund managed by Endless LLP, has confirmed the sale of Bartoline Ltd, a manufacturer of decorating sundries for the home improvement industry, to Paramount Retail Group Holdings.

The management team of Beverley-based Bartoline has been working with advisors in recent weeks to review options for the company, in view of the difficult trading challenges it continues to face.

Jonny Marston and Joanna Bull of professional services firm Alvarez & Marsal Europe LLP were appointed as joint administrators to the company yesterday. (3 December)

Immediately following the appointment, Bartoline was sold to Paramount via a pre-packaged deal process.

Paramount is acquiring the business and assets of Bartoline, and all staff will move under TUPE to the new owner, preserving the jobs of all 89 employees.

Bartoline was originally an investment by Enact Fund II in March 2021 to support its growth ambitions.

The company makes decorating equipment for major UK DIY retailers, as well as trade and wholesale outlets.

While sales volumes for Bartoline in the immediate post-Covid period declined as expected, the business then struggled to fully reflect higher labour and raw material costs in more recent pricing, which impacted its cash flow.

Marston, managing director at Alvarez & Marsal, said: “Bartoline had been heavily impacted by challenging market conditions, which has been experienced across several sectors in the wake of the pandemic.

“We are pleased to have completed a sale to Paramount which will see the business continue to operate from its base in Beverley, safeguarding all jobs.”

Chris Cormack, partner of Bartoline’s majority shareholder, Enact Fund II, added: “We have been very supportive of the business, investing significant capital and time since acquiring Bartoline in 2021.

“We worked closely with management to recruit additional skills and experience, as well as backing an expansion of production capacity.

“However, a more normalised post-Covid revenue profile has been unable to absorb higher costs beyond the company’s control.

“We wish the management and staff of Bartoline well as they enter a new phase of recovery under a new owner.”