Wholesaler and catering supplier Sohal Foods Ltd has been sold out of administration, saving the jobs of 30 employees.
Shortly following the appointment of Dean Nelson of Smith Cooper as administrator on 7 January, Hyperama Plc, which operated three cash and carries in the Midlands, put in a bid to purchase the business and assets of Sohal Foods.
After trading for 30 years, the company suffered “cash flow difficulties and a subsequent reduction in its margins”, resulting in it entering administration.
The company supplied food, drinks and catering supplies to restaurants, takeaways and licensed trade throughout the East Midlands region, and will continue to do so under the management of Hyperama.
Marcus Singh, managing director of Hyperama, said: “Rather than cutting costs, we are keeping on all staff and will be investing heavily into the business infrastructure to give it the necessary impetus.”
Singh added that their focus was “introducing our better buying power and range into Sohal Foods while incorporating their outstanding customer service and delivered offering into Hyperama.”
Nelson, partner and head of business recovery and insolvency at Smith Cooper, said: “This is a fantastic outcome, not only for the entire workforce who have kept their jobs but also for Derby as a whole.
“The administration process has ensured that the business has been saved and has emerged in a more robust position to continue servicing its customers’ needs.”