Diana Frangou and Guy Mander of RSM have been appointed joint administrators to Ultra Furniture Limited, a manufacturer of upholstered furniture to the UK retail market based in Kingswinford, West Midlands.
On appointment, the business was sold by the administrators to PPKidd 56 Limited, protecting the jobs of 116 employees and ensuring continued trade for the supplier and customer base.
The company had been suffering financial problems followed by the loss of a major customer in February 2016. Despite new sales being secured and cost-cutting measures implemented by management, the company was unable to trade out of its difficulties or secure additional investment outside of an insolvency process. Its parent company, Raven Holdings Limited, has also been placed into administration.
Joint administrator Diana Frangou, Restructuring Advisory Partner for RSM in Birmingham, said:
‘Our key priority throughout this process was to rescue the business, and we are extremely pleased to have been able to achieve this. As the company had traded from the same site for 20 years, they were keen to place an emphasis on a local supply network. Therefore its rescue was of upmost importance - not only for its direct stakeholders, but also for the local economy and community.’
Glenn Aston on behalf of PPKidd 56 Limited said:
‘The two key motivations behind delivering this transaction were protecting the jobs of 116 employees and ensuring that the loyal customers were not let down. The whole process has been very difficult and traumatic for all involved, and I personally would like to thank all employees both past and present for their cooperation and understanding throughout this prolonged period of uncertainty. It is regrettable that Ultra had to enter an insolvency process, however together with our retained workforce we hope to work with Ultra’s loyal customer and supplier base moving forward. Lastly I would also like to thank the professionals who have helped guide and assist us throughout this difficult process.’