Jobs saved at Cardiff security firm

10 June 2016

 Zenith Security Specialists was bought in a pre-pack administration deal by Consortia Services Group Ltd (set up by director), saving 44 jobs at the Cardiff firm.

Upon appointment of the administrators, Kelly Burton and Joanne Wright from Wilson Field, the firm was sold as a going concern to the new company last month. Due to rising VAT and PAYE debt, the company felt there was no other option and sought advice from the insolvency firm.

Burton said in a statement: 

“Unfortunately, a number of the inherited on-going contracts were unprofitable. Despite attempts, the company did not have sufficient time to turnaround the business and was struggling to service both its on-going overheads and significant HMRC liabilities.”

“Attempts were made to source further additional funding proved impossible and so the decision was taken to enter administration.”

“Following discussions with the director, the business was sold as a going concern, safeguarding all 44 employees' jobs and offering a better return for the company's creditors than alternative options.”

Pre-pack administration can be a powerful and efficient method to ensure the business continues running and employees are kept on.