Tue, 22 Jul 2025 | BUSINESS SALE
Sarah Raven Kitchen & Garden Limited, a major national gardening brand, has been rescued with a management buyout (MBO), carried out via a prepack administration.
Based in Wiltshire, Sarah Raven Kitchen & Garden dispatched horticultural products, plants, seeds and bulbs to close to a million UK customers. The company had undergone a period of strong growth, investing in expanding the business and integrating technology.
However, it had recently fallen into financial difficulties, attributed to inflation, tax changes and other external pressures. In the year to December 31 2023, the company reported turnover of £18 million, down from £23.2 million a year earlier, and an operating loss of over £31,000.
Robert Ferne and David Rubin of Begbies Traynor Group were appointed as joint administrators on July 14 2025, securing a rescue of the company on the same day.
Prior to the pre-pack sale being concluded, Begbies Traynor Group had approached more than 100 potential buyers and investors. However, they determined that an offer from co-founder Sarah Raven, together with a group of investors, delivered the best return for creditors and employees, while providing the company with an opportunity to rebuild.
The successor business has acquired a significant majority of the company’s brands and will continue to trade through the SarahRaven.com website. The sale of certain assets, as well as a continuing royalty interest in the new company, will provide compensation to creditors.
Following the rescue, a new injection of capital will aid the transition to a new, simpler operating model that focuses on the business’ core profitable categories, along with third-party fulfillment.
Joint administrator and Begbies Traynor senior partner David Rubin said that, despite a number of years of growth, investment and the building of “strong foundations and a very good core business”, the company had been hit by “inflationary cost rises, tax changes on certain kinds of plants and other pressures”.
Rubin said that the business "needed to seek a way forward to ensure its suppliers and creditors were paid" and that would enable it to "once more build on the foundations it had laid."
"After exploring all options," Rubin added, "this route delivered a very good outcome for all stakeholders.”
Sarah Raven said that the deal was “a necessary restructure [...] to guarantee the survival of the business” following a challenging few years. She added: "I have worked hard with the management team to put together a viable bid to secure the future of the business.”
Read more about 2021 reforms to rules regarding pre-pack sales to connected parties
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