Joint Administrators Andrew Pear and Michael Solomons of BM Advisory LLP, the restructuring, recovery and insolvency firm, have concluded a sale of the goodwill, customer list and order book of David Taylor Automedia Limited t/a Automedia, in Administration.
The family owned, Loughborough based commercial printer, one of the largest in Leicestershire and established over 40 years ago, suffered from a downturn in sales principally due to the general economic climate and also the loss of a major customer, which had a detrimental effect on cashflow.
On 17 October 2019, BM Advisory was engaged to advise on possible options for restructuring the business. Following a thorough review of the financial position of the Company, all options were explored and, on 22 October BM Advisory was engaged to commence a targeted marketing campaign with a view to achieving a sale of the business.
During the marketing period, 27 enquiries were received and 18 parties returned non-disclosure agreements. This resulted in two offers from unconnected parties for the order book, work in progress and intangible assets.
As the business was fast approaching a period where the Company typically sees a seasonal decline in sales, the Company was placed into Administration on 6 November 2019 with the appointment of BM Advisory. Shortly thereafter, a sale was concluded for the goodwill, customer list and order book to an unconnected party, Jump Design & Print Limited.
Andrew Pear said: “Whilst there was significant interest shown during the accelerated marketing period, there were no offers for the business as a going concern. Our main objective was to achieve a better result for the creditors as a whole, and this was accomplished through the conclusion of the sale in short order of the Company’s goodwill, work in progress, order book and a motor vehicle.”
The sale did not include the plant and machinery, office equipment and other motor vehicles, which will be marketed for sale via an online auction.
All 10 staff members have been made redundant.