Thu, 14 Dec 2023 | BUSINESS SALE
A manufacturer and printer of custom labels based in the Midlands has been acquired out of administration. Paramount Labels & Tags Limited, which trades from premises near Cannock, Staffordshire, fell into administration last month.
Paramount Labels & Tags manufactures and supplies custom self-adhesive label products across sectors including pharmaceutical and food and beverage. Over recent months, the company had faced increasing cashflow issues and growing pressure from creditors.
As a result, Mark Malone and Gareth Prince, partners at business recovery specialists Begbies Traynor's Birmingham office, were appointed as joint administrators to the company on November 30 and began exploring options for a sale.
After reporting that there was significant interest in acquiring the company, the joint administrators have subsequently secured a sale of Paramount Labels & Tags’ business and assets to Customark Limited, a fellow Midlands-based firm that provides industrial label and printing services, in a deal that secures 18 jobs.
Commenting on the sale, joint administrator Mark Malone said: "Having reviewed the company's financial position, it was concluded that selling the business out of administration was a realistic objective and would provide the best outcome for employees, suppliers and customers by securing continuity of supply.
"The company has a good reputation in its sector and the level of interest received during the sale process was very positive."
In the company’s most recent reports at Companies House, for the year ending October 31 2022, its fixed assets were valued at £765,026 and current assets at slightly over £600,000. At the time, the firm’s total equity amounted to £291,441.
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