Fri, 25 Nov 2022 | ADMINISTRATION
A buyer is being sought for Swansea-based vaping business Lumo Liquids Ltd after it entered administration. The company, incorporated in 2014, manufactures and sells a wide variety of e-liquid vaping products.
Its focus is on e-liquids (mixing, filling and packing e-liquid bottles, creating white label e-liquids, vape brands), nicotine services (mixing diluted nicotine solutions, mixing nicotine salt solutions, mixing bulk e-liquids) and POD filling (filling and packing vape devices, cartridges and PODs).
The company had experienced a sustained period of significant growth, building a portfolio of well-known vaping brands, modern production lines, blue chip customers (including British American Tobacco) and proprietary/in house developed product formulas.
However, after two of the firm’s key customers opted to move manufacturing and supply chains into mainland Europe, the company lost contracts representing over 85 per cent of its revenues. These lost sales could not be replaced quickly enough to offset trading losses, prompting Lumo Liquids’ directors to appoint administrators in order to conduct a sale of the business.
Mark Boughey and Conrad Pearson of Mazars have been appointed as joint administrators and the company will continue to trade while a buyer is sought for all or part of its business and assets.
Joint administrator Mark Boughey commented: "The core business, strong brands and production facilities are likely to be attractive to competitors and other interested parties.”
"Accordingly, we continue to trade the business and we are actively seeking a buyer for all or part of the company’s business and assets."
In its unaudited financial accounts for the year ending December 31 2021, Lumo Liquids’ fixed and current assets were each valued at slightly under £1.1 million, with the firm’s net assets amounting to £1.4 million.
Click here to view the UK's latest distressed businesses.
View recent UK administrations.
Designs and manufactures luxury, contemporary women's clothing. Benefits from a wide-ranging and diverse customer base. Well-developed e-commerce website consistently attracts new and repeat business. Strong second-tier management team in place.
LEASEHOLD
This is an opportunity to acquire a profitable and long established lighting manufacturer. The business manufactures and supplies a wide range of lighting solutions for leisure, industrial and agricultural applications. They also have a lucrative rec...
FREEHOLD
Boasting 10 state-of-the-art plastic injection moulding machines at its 38,000 sq ft operational premises, the company provides in-house manufacturing of a wide range of plastic fabricated products. In addition, the company provides an on-site consul...
LEASEHOLD
|
30
|
|
Nov
|
Chartered accountancy firm secures loan for acquisitive growth | BUSINESS NEWS
Chartered accountancy and business advisory firm Cottons Gro...
|
29
|
|
Nov
|
Water and environmental firm acquired at nearly 14x profits | BUSINESS SALE
Enisca, a multi-disciplinary engineering firm operating in t...
|
28
|
|
Nov
|
Optimo Care Group continues acquisitive expansion | BUSINESS SALE
Care provider Optimo Care Group has continued its expansion ...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources