The assets of a scaffolding business in Romsey, which entered administration last month, have been sold to a new buyer as part of a pre-pack deal.
Modus Access UK Limited ceased trading on 24 July 2016 and Alexander Kinninmonth and David Smithson of RSM Restructuring Advisory LLP were appointed as Joint Administrators the following day.
Following appointment, 11 employees were made redundant.
The company traded across the South Coast and was successful in obtaining National Access and Scaffolding Confederation accreditation resulting in it servicing a number of large customers including Kier, British Gas and Southampton City Council. At its peak the company reported turnover in excess of £1m and had sixteen members of staff.
During the previous eighteen months the company suffered a downtown in turnover resulting in it no longer being able to meet its financial obligations. Following advice provided by RSM it was recommended that the company be placed into administration with a view to achieving a pre-packaged sale of the company’s assets. The proposed strategy would ultimately achieve the best possible outcome for creditors.
In the four weeks leading up to the appointment RSM undertook a marketing process and various expressions of interest were received. A competitor, Blencowe Scaffolding Limited, was seeking to expand its operations and set up a new division based out of Southampton in order for it to compete in the South Coast market. The proposed sale therefore represented a significant opportunity and following negotiations a sale of the company’s scaffolding equipment was made to Blencowe Scaffolding Limited.
Sandy Kinninmonth, RSM Partner and one of the Joint Administrators said:
‘In this instance, it was not possible to rescue the business as a going concern. However, the sale of the assets provides Blencowe Scaffolding with a platform on which it can expand into the local market and delivers the best possible outcome for creditors.