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Leonard Curtis experts called into 40 year old business
Restructuring and insolvency experts David Smithson and Michael Fortune, two of the directors based in the South Coast office of national business recovery firm Leonard Curtis were appointed as Joint Administrators of 40 year old Snows Business Forms Limited on 14 March 2023.
The appointment of the Joint Administrators was initiated by the directors of the company following a drop in trade and cashflow difficulties.
Snows Business Forms Limited was formed in 1983 at a time when businesses relied on printing companies to produce their necessary stationery. As that requirement fell away, Snows attempted to expand its range of products, including other branded marketing goods to fit in with the modern era. Unfortunately, due to a significant reduction in demand during the COVID lockdowns and increasing national online competition, the company became loss making and suffered cashflow pressures.
The Joint Administrators considered the possibility of a sale of the business as a going concern but due to a lack of working capital the company had been forced to cease trading prior to their appointment and 18 employees in the business had unfortunately been made redundant.
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Joint Administrator David Smithson commented: We did quickly look at whether the business could be revived to facilitate a possible business sale following our appointment but concluded that without access to new working capital it was not a viable option.
We have, however, completed a sale of the majority of the unencumbered equipment to one interested party and a separate sale of the stock, database and goodwill to a different party with assistance from asset disposal specialists Hilco.
The administrators also confirmed that the companyes premises were leased and would be returned to the landlord.
Michael Fortune added: Our expertise and knowledge of dealing with printing businesses allowed us to advise the directors quickly on their options, and whilst it was not possible to achieve a sale of the business as a going concern, we managed to implement a strategy to maximise the value in the goodwill and assets for the benefit of creditors. We will also be assisting the former employees with their various claims to the redundancy payments office.
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