Published: 8th March 2018
A Grimsby company which supplies dried fish to Nigeria has been sold out of administration ‐ securing the future of 25 jobs.
The business and assets of JHS Fish Ltd, based in Trondiem Way, Stallingborough, have been sold as a going concern to JHS Export Ltd.
Julie Palmer, regional managing partner at business recovery specialists Begbies Traynor's Salisbury office, managed the sale with Joint Administrator Sally Richards. The administrators were appointed on February 16.
Julie Palmer said the company had begun to hit financial problems following a "sharp but prolonged recession" in Nigeria, and currency restrictions were put in place by the Nigerian Government, which adversely affected cashflow.
She said: "The Nigerian market had been in a sharp recession and there were signs of stability and after the company went through some restructuring, the trade with Nigeria looked promising. However, the Nigerian market went into a deeper and longer recession than originally anticipated. Things started to improve in late 2017 but the Central Bank of Nigeria continued to enforce currency restrictions leading to difficulties in getting funds out of the country. Despite the best efforts to increase the export price and reduce costs, the company ran into financial difficulties.
"The management team made every effort to turn things around, but in January they had reached a stage where they were unable to continue. They did the right thing in turning for advice, and we were quickly able to establish that a sale out of administration was the best course of action, meaning the company can now face the future with a greater degree of confidence. We were delighted to also be able to ensure the future jobs of the employees."
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 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.