The Leeds-based UK branch of Constar International has been saved in a pre-pack deal, rescuing 140 jobs.
The global manufacturer group, specialising in supplying drink containers for a wide variety of products, went into US chapter 11 (equivalent to administration) proceedings back in December 2013.
The UK branch, Constar International UK Limited, faced an uncertain future until a pre-pack administration deal was arranged by joint administrators, Nick Edwards and Dan Butters of Deloitte on 14th February.
Almost immediately after appointment, the business and assets were sold to a new company, Sherburn Acquisitions Limited, which has been connected to Greybull Capital, a turnaround investor. Greybull Capital has previously been involved in the buyouts of Games, Rileys and Comet.
The pre-pack deal followed a US approved sales process and court sales order.
Dan Butters commented, “Having worked with the company and its key stakeholders in challenging circumstances over the last couple of months, we are delighted to announce the going concern sale of the Constar UK business which preserves a significant number of jobs in the local region”.
A pre-pack deal is often a powerful tool to help preserve jobs and continue a business when there are financial difficulties. For more information on the benefits and issues involved, visit our pre-pack administration section of the website.