Monday, June 24, 2024

Flexible packaging manufacturer ceases trading after sale unsuccessful

Nottinghamshire-based Surepak Limited is ceasing to trade despite appointed administrators at PKF Smith Cooper being hopeful of a sale following the interest of 96 parties.

Surepak Limited’s financial concerns became apparent during the global energy crisis when its electricity costs increased by more than 425%. This increase, coupled with the loss of two significant contracts, decreased the company’s turnover by c.£1m, due to customers’ packaging requirements changing and the relocation of a customer abroad.

The Nottinghamshire-based organisation sought a buyer after sole director Stuart Yorston filed for administration on 9th February 2024. This was to safeguard the company’s business, assets, and employees from a winding-up petition served by a creditor, which was due to be heard on 14th February.

PKF Smith Cooper’s Business Recovery and Restructuring Partners Dean Nelson and Nick Lee were appointed joint administrators on 12th February. Despite the challenges, Surepak Limited has continued to trade for the short term whilst in administration and the administrators diligently pursued potential buyers, receiving substantial interest from 96 parties.

Despite the optimum effort following a merger and acquisition process, and various offers being received, the sale progression has subsequently been unsuccessful, resulting in Surepak Limited ceasing to trade on 10th May 2024. Incorporated in 1991, the company has been trading for over 32 years, starting out as a distributor, before moving into manufacturing in 2005.

Polypouch UK Limited has purchased the order book.

The administrators said they are disappointed with the ultimate outcome in not securing a sale of the business and assets as a going concern, however they would like to wholeheartedly thank the employees for their hard work and dedication, as well as customers for their continued support throughout this difficult process.

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