Administrators axe 72 jobs as retail business collapses

A manufacturer and retailer of personal hygiene products has gone into administration with the loss of 72 jobs.

East Yorkshire’s WNG Group, which trades under the Wachem, I Love Products and Sutton Manufacturing Solutions brands, went into administration last week.

Matt Ingram and Steven Muncaster, managing directors of Duff & Phelps, were appointed as joint administrators to the company on 21 February.

WNG manufactured and bottled personal care and household products for high street retailers and supermarkets.

The administrators said that despite significant investment in production facilities in Hull and a strong customer base, the business struggled for working capital due to a competitive market and pricing pressures.

WNG Group ceased trading upon the appointment of administrators and they were forced to make 72 jobs redundant.

Matt Ingram, managing director, Duff and Phelps said, “My firm was instructed to assist management explore options to continue with production in Hull, with a view to preserving jobs and improving the outcome for creditors.

“Unfortunately, despite encouraging initial interest from both trade buyers and equity investors, the state of the group’s financial affairs and reliance on third party suppliers saw such interest wane following due diligence.”

He continued: “It is disappointing for all involved that the appointment of Administrators became necessary, but having exhausted all working capital, and with the threat of winding up proceedings looming without credible investment in the wings, there were no feasible alternative options.”

Solent Global Holdings sold its 90% stake in ultimate parent company WNG Ltd, in May 2015.