The Wigan-based manufacturing company, Belmont Packaging Limited, has been saved in a pre-pack administration deal by Dawn Packaging Limited. Leonard Curtis were appointed administrators back in November due to pressure from creditors.
The company, which has been trading for 30 years, struggled to keep customers after they relocated abroad and suffered a significant fall in profits. The new company Dawn Packaging Ltd was owned by the daughter of Belmont Packaging’s Director who bought the failing company in a pre-pack deal (£1.015 million). This saved 35 jobs, and the new company reverted back to the original name.
Trading since 1878, the business manufactured packaging and sold corrugated fibre board to a number of sources. Having sustained a successful business for the majority of the 30 years, the last three years have been difficult due to ‘poor market conditions’ and a loss of customers in the move abroad.
Leonard Curtis has stated that secured creditors and trustees will be paid back in full, as will employees in regards to holiday and redundancy pay. The administrators are also expecting unsecured and trade creditors to be paid also.
Generally there is an order of preference when paying back debt, with secured creditors at the top and unsecured creditors and shareholders further down. Read our page on Creditors’ Rights Explained for more details.
Categories: Pre Pack Administration Process and Procedures