Twenty four jobs have been saved after a South Wales distribution company was sold out of administration.
Fleet Style Distribution Ltd, based in Swansea, appointed Begbies Traynor to handle its administration process after the company was hit by a number of problems.
The administrators completed the sale of the company to Gateway To Wales Ltd ‐ securing the future of 24 employees.
A family‐run business, Fleet Style was set up 25 years ago, serving not just Wales but UK‐wide and international customers.
The long‐established company distributed palleted goods, and was run by managing director Chris Downing. His son Jamie will be a director of Gateway To Wales Ltd, together with Andy Bullock, an independent accounting professional with many years' successful turnaround experience.
Joint administrators were appointed in Huw Powell, from Begbies Traynor's Swansea office, and Gavin Savage, from their Southampton office. Mr Powell said: "The business faced reduced margins due to increased costs and competition, resulting in the loss of one contract worth around 30 per cent of their business. The resultant impact on cash flow meant that the company was insolvent, so we advised that administration and a subsequent sale of the business would provide the best outcome for creditors. We are very pleased to have been able to secure the jobs of the employees, and that through funding from Bibby Financial Services the new company is in a position to face the future with confidence."
Mr Powell added that, working closely with the directors, the administrators were able to ensure the business had proper backing and in position to prosper despite being in what is a very competitive marketplace.
Jamie Downing said: "The new company will provide an efficient service at competitive rates to secure its standing in the community."
Huw is a chartered certified accountant with more than 14 years' experience working with businesses that are experiencing financial difficulties.
His impressive network of contacts and relationships with key stakeholders - from lenders and creditors to turnaround specialists – is key in strengthening Begbies Traynor's presence in Wales.