Thu, 24 Aug 2023 | BUSINESS SALE
A family-run kitchen manufacturer has been acquired out of administration by Sigma 3 Group, parent company of Masterclass Kitchens. Birmingham-based Mereway Kitchens fell into administration earlier this month, saying it had faced a challenging few years of trading.
The future of the firm has now been secured, however, after its business and assets were acquired out of administration by Sigma 3 Group, in a deal that the buyer described as a “significant milestone” in its growth plans.
Mereway Kitchens was founded in 1986 and served as the UK supplier to more than 100 independent retailers and national retailer John Lewis. Despite reporting nearly £19 million in turnover for the year to December 2021 (up almost 30 per cent year-on-year), the company filed notice of intention to appoint administrators earlier this month.
At the time, the company said that the notice, filed on August 2, would provide it with time to agree a sale of the business. The company confirmed that it was in the final stages of talks with a then-unnamed buyer for a deal that would secure the business’ future and provide “significant new investment” with “no disruption to supply”.
Following the acquisition of Mereway’s business and assets by Sigma 3 Group, co-founder Richard and Bob Norris said: “Although we’ve faced challenges over the past few years and are disappointed to have not been able to trade through them, we’re pleased that Sigma 3 Group has taken over and ensured the continued success of the Mereway Kitchens business. This move provides much-needed security and stability for the staff, customers, and suppliers.”
Sigma 3 Group Chairman Brian Lakin commented: "Whilst we determine our investment plans for Mereway in the mid to long-term, it will be business as usual. We hope to restore stability with a sharp focus on improving service and completeness. Also, reinstating best practices to facilitate future expansion as we are committed to the firm's long-term strategic success and prosperity."
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