Liquidation Deal Saves South Shields Clothing Company
The future of a South Shields clothing company has been secured saving 15 jobs, thanks to a deal negotiated by business rescue, recovery and restructuring specialist, Begbies Traynor, following the voluntary liquidation of Leeannes Limited last week.
The business which manufactured ladies clothing for a catalogue company, had been started by the Hall family and dated back to 1963. Run by William David Hall and his daughter, Lesley Dixon, it traded profitably until 2006, but then hit problems as it struggled to maintain adequate profit margins. On 17th December, the company ceased trading and all of the staff was subsequently made redundant.
The plant and machinery belonging to Leeannes Limited has now been sold to its sole customer, catalogue company Country Collection, which will rent it to a new company, Country Apparel Limited, whose directors are David Hall and Lesley Dixon. The new company has also bought the other remaining assets of Leeannes Limited.
Joint Liquidator Simon Lundy of Begbies Traynor in Newcastle upon Tyne, said: “Like many small businesses, Leeannes Limited initially struggled to find informed advice and assistance when it ran into trouble. We were able to work with the directors to bring about the best possible outcome in the circumstances, enabling this long established Tyneside business to remain in the hands of the family that has put so much work into it over the last 47 years and also saving 15 jobs for local people.
“The new company has negotiated improved terms and volume, giving it a better opportunity to trade through the current tough market conditions.”
Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor.
Julie is a member of the Insolvency Practitioners Association and the None Administrative Receivers Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.