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Failure of CVA for Paton Brown leaves a pre-pack

13 April 2019

Failure of CVA for Paton Brown leaves a pre-pack

The direct mail company, located in Ashton-under-Lyne, Paton Brown has fallen into administration after they could no longer fulfil their Company Voluntary Arrangement (CVA) requirements

Just last month, Gary Lee and Dean Watson from Begbies Traynor, were appointed administrators. This left the business, assets and seven employees to be transferred to PB Fulfilment’s ownership, in a pre-packaged sale.

In 2015, Paton entered their CVA, which meant they agreed to pay around £290,000 to creditors and HMRC, in monthly instalments over the course of the next five years.

July 2018, saw businessman Kevin Griffin, acquire the firm in a deal, running alongside his Acrobat group and related businesses – including direct mail companies, Acrobat Marketing Solutions and Acrobat Carbon services (administrated in February 2019).

Acrobat Carbon’s administration meant Paton had unsettled liabilities and had to consider all options for restructuring.

A spokesman explained that there was no possibility to restructure the finances from anything other than formal insolvency, as the company was already deeply tied into a five-year CVA.

When the two companies shared a site in Manchester, they shared equipment and workforce. Between Paton Brown and Acrobat Marketing, was 65 staff, four Xerox digital printers and a range of folding and inserting machines and mailing and polywrapping lines.

Paton Brown are yet to comment.

Categories: Printing, CVA, What is a CVA or Company voluntary arrangement?, Pre Pack Administration Process and Procedures

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