SPS Print Group has entered a company voluntary arrangement (CVA) after it was approved by 99% of creditors at the creditors meeting.
The Dorset-based printing business will continue to trade, saving 154 jobs in the process. Richard Lewis and Nigel Morrison from Grant Thornton were appointed as supervisors after the business struggled with significant losses which had not been previously accounted for.
The company issued a statement saying “The board has now appointed a new financial director, a new financial controller and implemented a range of measures to reduce costs and return the business to profitability. Now the CVA has been approved, the directors are extremely positive about the future.”
“The company has the full support of its bank and shareholders and has the necessary finance to allow the business to continue with its trade and growth plans.”
Creditors will receive 53p in the pound, a far better outcome than if the business went into liquidation which would result in creditors getting just 2p in the pound.