Mon, 10 Aug 2020 | BUSINESS SALE
Samworth Brothers has completed the £6.4 million acquisition of food-to-go brand Urban Eat following the collapse of its former owner, Adelie Foods. The sale comes as part of an asset sell-off, after Adelie collapsed in June when administrators were unable to secure a sale of the business.
Adelie entered administration in May, as reported here, with administrators Deloitte saying the company had experienced a “significant adverse effect” from COVID-19 lockdown.
Administrators were said to have held talks with around 70 potential bidders and were reportedly close to securing a sale for parts of the business. However, this deal fell through due to the threat of Competitions and Market Authority scrutiny, leading to the decision to sell off the company’s assets.
Adelie registered an EBITDA loss over the last three years, with sales of £226 million in the year to February 2020, with losses of £9.3 million. Losses were blamed on pricing pressure in the market, which was then exacerbated by COVID-19 lockdown.
New documents from the administrators have revealed that Adelie owed suppliers, staff and its private equity owner ICG nearly £100 million prior to its collapse. The company’s unsecured creditors are owed £24.3 million across over 700 claims, but are not expected to recoup any money.
Samworth Brothers has also acquired plant and machinery from Adelie’s Southall, West London site for £475,000. Wintherbotham Darby also bought equipment from its Redmoor plant for £750,000, while the Real Wrap Co bought equipment from Adelie’s Wembley factory for £120,000.
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