Confidential Advice Line: 0800 063 9221

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.”


About the author

Julie Palmer

Regional Managing Partner

Meet our Team of Experts

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.

48 Regional UK Offices

Find your local Begbies Traynor office and speak to an adviser today.

Find your Local Office
0800 063 9221

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0800 464 0871

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0161 837 1700

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
Advice for businesses on EBTs after HMRC Supreme Court victory
Begbies Traynor currently advising numerous businesses
HMRC sends out follower notices to reclaim tax lost to Employee Benefit Trusts
Find out more →
 
Open Banking to Reshape the Alternative Finance Sector
CMA mandates the adoption of Open Banking by early 2018
Will see alternative lenders competing on a level playing field with dominant banks
Read more →
 
Join thousands of professionals by signing up for our updates
Analysis and Opinion from our Partners
Top Industry News
Register Now →
 

Advice you can trust

We are accredited by the following industry leading organisations

Insolvency Practitioners Association Institute of Chartered Accountants in England and Wales R3: Association of Business Recovery Professionals ICAEW Business Advice Service Turnaround Management Association ACCA (the Association of Chartered Certified Accountants) ICAS | The Institute of Chartered Accountants of Scotland

Contact the Begbies Traynor team

or Find your Nearest Office
Processing...