Pre-pack sale of retail business secured saving over 260 jobs
The business and assets of Shuropody have been sold following the appointment of Gareth Harris and Lee Lockwood of RSM UK Restructuring Advisory LLP as joint administrators.
The specialist shoe and podiatry retailer went into administration on 7 December 2022 and was immediately sold to a subsidiary of Baaj Capital LLP, a special situations investor which holds a number of other retail investments.
The deal has saved over 260 jobs and all of the company’s 39 stores across the UK, including in Derby, Leicester, and Nottingham, remain open and are continuing to trade under new ownership.
Gareth Harris, joint administrator and restructuring partner at RSM, said: “Securing this pre-pack sale will ensure customers who have bought treatment plans will have continuity of service and safeguard the jobs of the vast majority of the Shuropody team.
“It is unfortunate that Shuropody has had to go through an administration process, but the legacy of the last couple of Covid years is still proving challenging to navigate for many businesses, including this one.
“Given the current economic climate the high street is seeing many retailers struggle so it is particularly pleasing to help save this business, and ensure employees will be paid as we run into the Christmas period.”
The joint administrators were advised by Matthew Brown, Liz Russell and Niall Crossley of Gateley Legal.
Derby apprentice scoops top award for inspiring next generation of engineers
Ali Amin’s dedication to helping others start their own apprenticeship journey has landed him a coveted national apprenticeship award.
The 20-year-old from Derby was named England’s Advanced Apprentice of the Year at the 19th National Apprenticeship Awards, which were held in London.
The former Derby College student was praised by judges for dedicating his time to mentoring apprentices and encouraging local schools and colleges to get involved in engineering.
He’s currently completing a Higher Degree Electro-Mechanical Engineering Apprenticeship at the University of Nottingham, working at Shawpak – a Derby-based manufacturer of a range of medical device packaging machinery.
Ali said: “I feel very thankful to have been recognised in this way. So many people have given me their time and passed on their knowledge throughout my apprenticeship so this award is for them too.
“I’m excited to continue my apprenticeship journey at Shawpak. I love working for a company which designs products that directly help people.”
Ali can’t speak highly enough of apprenticeships, adding: “The experience I’ve gained so far has been invaluable. The fact I get to earn while I learn is a massive benefit too. I’d definitely recommend an apprenticeship in engineering.”
He has now decided to join the East Midlands Apprenticeship Ambassador Network (EMAAN), which will see him further encourage other young people to consider an apprenticeship.
Angela Borman, chair of EMAAN, said: “I’m thrilled to see Ali, an apprentice from right here in the East Midlands, receive such a prestigious award. I’m also delighted that he’s now decided to join our network as an ambassador – a very important role.
“Having worked in the delivery of apprenticeships for the whole of my career, I passionately believe they are a great opportunity. These awards showcase how they can help people thrive.
“We’ve got some amazing employers who work hard to ensure that the delivery of apprenticeships here in the East Midlands is first class. I am proud to be working with them to continue this success.”
Lincolnshire online retailer selling outdoor accessories enters administration
Northcore, an outdoor accessories and lifestyle online retailer based in Lincolnshire, has entered administration.
Graham Bushby, Nick Edwards and Matthew Haw of RSM UK Restructuring Advisory LLP were appointed as Joint Administrators of Louth-based Northcore Limited, as well as Shade Limited, on 30 November 2022.
Shade Limited, trading as Shade Station, is an online retailer of sunglasses, glasses and watches.
The businesses were taken over by Internet Fusion Group (IFG) last year.
The Joint Administrators say they are currently reviewing the financial position of both companies to ascertain the prospect of continuing to trade the businesses, and the viability to sell them as a going concern.
Keepmoat appoints new land and partnerships director to support business growth
Matt Barker has been appointed as Keepmoat’s newest land and partnerships director and will be using his 24-year industry expertise to oversee land opportunities to regenerate communities in the Yorkshire East and East Midlands regions.
To align with Keepmoat’s plans for regional growth, Matt, who was previously land and planning director at Persimmon Homes, Linden Homes and Redrow Homes, has been appointed to support the existing land teams in the housebuilder’s East Midlands and Yorkshire East regions.
Based in Lincoln, Matt will be looking to fill gaps within the business’s development portfolio, and secure land opportunities to align with the homebuilder’s growth plans. His main focus will be to expand Keepmoat’s operations into the Lincolnshire area, covering towns such as Scunthorpe, Grimsby, Stamford, Grantham, and others, with a view to delivering much needed, energy-efficient homes that are fit for the future.
When asked about his ambitions for the region, Matt Barker said: “The East of the country, most specifically Lincolnshire and the East Riding, are areas of great potential for housebuilding, with some booming industries adding to the appeal, such as large-scale agriculture, engineering, and manufacturing.
“The region is also fantastically placed with towns such as York, Grantham, Newark and Retford having convenient rail and motorway connections, and there are some exciting developments proposed in North and North East Lincolnshire, which is also driving housing growth in the area.
“I am keen to continue Keepmoat’s previous success of providing regenerated sites and thriving communities through our relationships with landowners, local authorities, land agents, and partners such as Homes England.
“Key to my role will be identifying and securing opportunities in the eastern corridor to push Keepmoat’s operational boundaries into Lincolnshire and strengthen its presence in East Yorkshire.”
Keepmoat is one of the UK’s leading partnership homebuilders and a leading brownfield builder. To align with the housebuilder’s aims, Matt will be leading on the negotiation and application for new land to regenerate into new communities. Together with local authorities and housing associations, he will continue to work towards the delivery of affordable, high-quality housing, as well as homes available for first-time buyers.
US insurance firm backs multi-million-pound heritage vehicle centre scheme
A US-headquartered classic car insurer has given its backing to a new multi-million-pound heritage vehicle centre, which is being created in Derby thanks to support from the City Council.
Hagerty International has partnered with Great Northern Classics, which is creating the centre at the former Rolls-Royce Light Alloys site, in Osmaston Road.
As part of the agreement, Hagerty becomes the preferred insurance partner for Great Northern Classics, with a host of branded areas on-site, and a number of planned events and member incentives.
Due to open in the summer, the specialist hub for the classic vehicle industry will have apprenticeships at its heart, with resident businesses contributing to a not-for-profit training school that promises to hone the skills of numerous apprentices each year.
It will bring together an estimated 30 specialist restoration and fabrication companies, with a visitor centre and event space.
Permission for the centre was given by the city council earlier this year.
It has also made another contribution to the scheme by lending Great Northern Classics £1.25 million from its Derby Enterprise Growth Fund.
According to Shaun Matthews, founder of Great Northern Classics, the site aims to provide a base for an estimated 120 jobs, both skilled and apprenticeships.
He said: “We are proud to welcome Hagerty as a partner as we work towards our official opening next summer.
“Both brands share a common aim to protect and champion the classic car industry and together we can create a stunning enthusiast destination and working hub in the heart of Derby.
“Great Northern Classics brings new life to the former Rolls-Royce site and promises to bring a number of specialist businesses to the area, creating new jobs and apprenticeships and contributing to the continued success of the UK classic car industry.”
Mark Roper, Managing Director at Hagerty International, said “Hagerty is committed to the preservation of the global enthusiast vehicle industry, ensuring it can be enjoyed by generations to come.
“The aim of Great Northern Classics, in creating new jobs and apprenticeships, is vital for the longevity of our industry, while also providing a brand-new destination for enthusiasts to gather.
“I am delighted to announce our partnership with this exciting new development for UK car culture and look forward to the official opening in the summer of next year.”
Leicester businessman found guilty of defrauding victims across the UK
A businessman from Leicester has been found guilty of selling fraudulent franchise licences to victims across the UK, following a four-day trial at Leicester Crown Court.
Nazir Abdul Rashid Daud, 58, formerly of Landseer Road, Leicester, entered pleas of not guilty but failed to attend his trial. He was charged with three counts under the Fraud Act 2006 in relation to false representations made between 2015 and 2018 and a further charge of fraudulent trading under the Companies Act 2006, and was found guilty in his absence.
The prosecution was brought following an investigation by Leicestershire County Council Trading Standards Service, which received statements from 18 victims.
The court heard that Daud was the sole director of Payrolls Direct Limited, which he set up in 2014. Daud had advertised franchise licences for a new cloud-based payrolls system, which he was selling for between £5,995 and £9,995.
Franchisees would sign up clients, process payroll for each employee of the company they signed up, and Payrolls Direct would take 20 per cent of the fee, with the franchisee keeping the rest.
Daud claimed that buying a franchise licence would allow people to earn between £250 and £2,000 per month, depending on how much time they put into the business and how many clients they signed up. Advertising for Payrolls Direct also promised franchisees initial training, ongoing unlimited support, marketing materials and networking opportunities with successful franchisees.
But the court heard that statements from 18 franchisees who spoke to Trading Standards during the investigation revealed that only one was able to sign up any clients, and as the promised unlimited help, support and training was never provided, the franchisees were unable to use the payrolls system, leading to the contract with the clients being terminated.
Co-defendant Anthony Raybould, 65, of Alumhurst Road, Bournemouth, pleaded guilty to fraud by false representation under the Fraud Act 2006 and fraudulent trading under the Companies Act 2006.
The court heard that Raybould was the first franchisee licence holder, although he soon became a salesperson for Payrolls Direct, encouraging people to buy franchise licences.
He pleaded guilty to charges of fraud by false representation for receiving commission for every franchisee who bought a licence. Victims said he made false representations to them that he had many clients, was earning more than £2,000 per month on a part-time basis and was retiring to Spain – despite not earning anything himself from the franchise.
The court heard how Raybould earned in excess of £10,000 in ‘commission’ payments. It is also believed that Daud earned in excess of £300,000 in franchise licence fees.
Detailed in victims’ personal statements, the court was told how many had taken loans out to pay for the initial franchise fee or used life savings, had fallen into debt, given up their own current employment and the ordeal had severely affected their mental health, wellbeing, and personal relationships.
The court was told that Reybould was of previous good character and therefore a suspended sentence was imposed. As Daud has not yet been sentenced, no mitigation was made on his behalf.
His Honour Judge Mooncey sentenced Raybould to 24 months in custody, reduced to 22 months for the late guilty plea, with the sentence suspended for two years.
The judge was unable to technically sentence Daud in his absence from court, but issued a warrant for his arrest.
An order was also made under the Proceeds of Crime Act, and a timetable set for confiscation proceedings to recover any criminal benefit obtained by Daud and Raybould.
Gary Connors, head of Leicestershire County Council Trading Standards Service, said: “This form of fraud provides a quick financial return for the perpetrators, leaving the victims in financial and emotional turmoil.
“We expect the cost of living crisis will provide greater openings for franchise fraudsters as people look for more openings to bring in much needed income.
“The franchise industry is unregulated as a sector, and I would advise those seeking a new business opportunity to treat every success or income claim as totally unsubstantiated; if the seller cannot produce meaningful audited financial accounts of that success, move on.
“For Leicestershire Trading Standards Service, such investigations are resource intensive but necessary to protect consumers and legitimate businesses.”
Green light for new luxury homes in Melton Mowbray
Developer Springbourne Homes will begin work on a range of new, luxury homes near Melton Mowbray in the New Year, after securing planning permission from Melton Borough Council.
The Leicestershire firm is to deliver 29 homes at its ten acre site in Sandy Lane, Little Dalby, which features five, four and three bedroom homes, including seven bungalows.
Springbourne Homes chairman Adrian Burr said: “I am delighted to confirm that we will start construction at Sandy Lane after the festive period. We have worked alongside Melton Borough Council to agree these plans and we’re now keen to start work on what we believe will be another successful development.
“There’s a lot of negativity in the construction industry at the moment but there’s none of that here at Springbourne. We are feeling very upbeat and positive. We’re excited that we’ll soon be moving into Melton to deliver our unique brand of aspirational homes which have been the bedrock of our success story for almost 30 years now.”
Robust first half results for Frasers Group as pre-tax profits soar
Frasers Group has delivered a “robust set of first half results,” as revenue and profits rise despite the challenging backdrop of heightened economic uncertainty, skyrocketing energy costs, rising inflation, the cost of living crisis, and geopolitical instability.
In unaudited interim results for the 26 weeks to 23 October 2022, the Shirebrook-based retailer has posted group revenue of £2.6bn, up from £2.3bn in same period last year, largely due to acquisitions.
Reported profit before tax meanwhile was £284.6m, up 53% from £186m, which the company says reflects continually improving product choice, the growth of FLANNELS through store roll out and online, and profit on disposal of assets.
Adjusted profit before tax increased to £267.1m from £192.4m.
Looking ahead, Frasers Group said: “Whilst the macroeconomic environment is clearly challenging and the backdrop for the coming year is hard to predict with any certainty, we have strong strategic and trading momentum behind us and we remain confident in our guidance for Adjusted PBT of between £450m to £500m for this financial year.”
David Daly, non-executive chair, added: “We have delivered a strong performance during the period, despite the challenging backdrop of heightened economic uncertainty in the UK, soaring energy costs, rapidly rising inflation, a widespread cost of living crisis and continued geopolitical instability. Whilst post pandemic issues with the global supply chain remain, there are signs that these are beginning to ease.
“Frasers has delivered a robust set of first half results which demonstrate the resilience of our business and the continued success of our Elevation Strategy.”
During the period, Frasers Group made a series of strategic acquisitions, including Missguided, I Saw It First and Gieves & Hawkes (post period-end), while also strengthening its relationship with strategic brand partner Hugo Boss AG.
2023 Business Predictions: Andrew Mair, partner and head of BDO LLP in the East Midlands
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Andrew Mair, partner and head of BDO LLP in the East Midlands.
There’s little doubt that trading conditions for East Midlands businesses are extremely challenging and come after a sustained period of pressure which is set to continue into 2023.
However, the region is a resilient marketplace and, despite considerable economic headwinds, East Midlands businesses have performed ahead of expectations. According to our latest Rethinking the Economy survey of 500 mid-market businesses, 73% of regional companies are ahead of where they expected to be. And an overwhelming 83% of businesses are significantly more optimistic about their business prospects going into 2023, compared to this time last year.
While it’s reassuring to see business confidence at a high level, it should be tempered with some caution in light of the recessionary pressures. Issues, such as the rising price of materials and products, together with rising energy prices continue to drive inflation and remain a real cause for concern for regional businesses. These issues, together with supply chain challenges and the availability and cost of recruiting and retaining the right people, are adding to the general cost of doing business and placing immeasurable pressure on companies. The combination of all of these factors are forcing many to think creatively about how they can drive growth in 2023 against a challenging economic backdrop.
According to our Rethinking the Economy survey, more than a third of East Midlands businesses will be investing in ESG in 2023 in a bid to attract more customers, responding to the increasing interest from employees and reinvesting savings from reducing the business’s carbon footprint. In addition, 30% intend to increase investment in online and digital, while nearly a quarter plan to invest in hiring new talent.
There is a considerable amount of uncertainty heading into 2023, but one thing is certain – a large portion of East Midlands businesses are well positioned and primed to ride out the economic pressures.
New energy centre opens at Grantham College
Grantham College has officially opened its new energy centre which sets out to develop students’ skills and “be part of a brighter future.”
Principal Paul Dean welcomed visitors and the Mayor of Grantham, Councillor Graham Jeal, cut the ribbon to open the centre.
Mr Dean said: “It is a real delight to open these facilities after all of the work from our staff, suppliers and contractors. This centre will help us develop the skills of the students that are so urgently needed if we are to transition to net zero.
“Sometimes colleges have to lead and take risks and have vision for capacity to be developed. When these skills are developed, the opportunity to develop businesses is there and investing in green skills is a win win. It should not be seen as a cost but a long-term investment.
“We at Grantham college want to be a part of a brighter future, supporting energy security and the transition to net zero. It is hoped it will help solve current skills gaps but also help to inspire our students.”
The college’s existing engineering and link block spaces have been transformed to create a centre that combines engineering and construction with state-of-the-art and industry-standard equipment.
It provides new learning opportunities in electrical engineering, plumbing, gas fitting and renewable energies including solar, wind and air.
This project also extends the curriculum to not only give students more skills, but allows more businesses to work with the college.
Steven Peacock, Vice Principal of Grantham College, showed guests around the centre to give them an exclusive look into the project.
He said: “We are very delighted that the Greater Lincolnshire Local Enterprise Partnership has funded this project. The two disciplines of construction and engineering are taken into account with a view to developing technologies and looking towards the future in terms of energies.”
With the new centre, the college offers a number of courses including levels 1 to 3 in plumbing studies, levels 1 to 3 in construction skills, as well as apprenticeships in plumbing and domestic heating and engineering fitting alongside other courses.
The centre will also offer flexible green skills boot camps including introductions to heat pump installation, solar panel installation, smart metering and more.
