Wed, 05 Jun 2024 | ADMINISTRATION
A Nottingham-based flexible packaging manufacturer that fell into administration earlier this year has ceased trading, despite “overwhelming” interest in the company from potential buyers. Surepak Limited fell into administration in February, with administrators from PKF Smith Cooper saying shortly afterwards that they were "very optimistic” of securing a rescue deal.
However, PKF Smith Cooper have now confirmed that the business has ceased trading, saying in a statement: “The administrators 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.”
Surepak was incorporated in 1991, initially operating as a distributor before subsequently moving into manufacturing in 1995. The company carved out a strong position in the flexible packaging industry, becoming a leading supplier of bags and pouches to retailers, including all major UK supermarkets, as well as an array of other sectors.
However, the company began struggling amid the global energy crisis of recent years, with administrators saying that its electricity costs had increased by more than 425 per cent. This was exacerbated by the loss of two significant contracts, leading to an approximately £1 million drop in turnover.
Sole director Stuart Yorston filed for administration in February, in an effort to safeguard Surepak’s business, assets and workforce from a winding-up petition served by a creditor, which was due to be heard on February 14. PKF Smith Cooper’s Dean Nelson and Nick Lee were appointed as joint administrators on February 12 and the company continued trading in the short-term as they sought to find a buyer.
Despite receiving interest from 96 parties, and numerous offers, the sale process was ultimately unsuccessful and Surepak ceased trading on May 10. The company’s order book has been acquired by Polypouch UK, with its fixed assets, including stock, plant and machinery and office equipment, available for sale.
Surepak’s balance sheet as of December 31 2022 shows £1.48 million in fixed assets and slightly over £945,000 in current assets, with total equity of just under £771,000.
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