*Administrators from KPMG have completed the sale of a 100 year-old Gloucestershire-based manufacturer and wholesaler of stationery and haberdashery products. *
Based in the Forest of Dean area, Whitecroft Essentials Ltd entered administration following a period of increased trading losses and pension obligations.
Richard Philpott and Will Wright of KPMG’s restructuring practice were appointed joint administrators to the company on 19 February.
The same day a pre-pack sale of the business and its assets was secured to Whitecroft Essentials (Lydney) Limited, a company established by the existing management team, backed by a new private investor.
All 47 Whitecroft staff have been transferred to the new company.
Philpott, partner at KPMG, said: “Whitecroft had suffered from sustained trading losses over recent years and these losses, combined with meeting substantial pension obligations, left the business severely cash constrained and unable to continue trading in the short to medium term.
“The business sale has ensured continuity for the company’s wide customer base across the UK and overseas, and preserved the value of the business.”
As part of the sale agreement, the new owners have agreed to upgrade the company’s premises, which will be leased back to Whitecroft. The deal also secures ongoing occupation for a number of other tenants who lease units on the site.