Flexographic Packaging Company Loses Major Contract

The Challenge

A successful 40-year-old flexographic packaging and printing company in Norfolk, with annual sales over £3 million, faced a critical crisis. The sudden and unexpected loss of a major contract severely impacted its viability, forcing the directors to seek advice from our team of insolvency practitioners. The company was no longer able to trade profitably and was considered unviable.

The Solution

After exploring all available options, it was determined that the best course of action was to sell the business and its assets to an unrelated third party, within the same industry. RMT KSA Insolvency Practitioners, Eric Walls and Wayne Harrison, took the lead. After a short period of marketing the business and its assets, including goodwill, intellectual property, stock, and equipment, the solution was a sale, via a pre-pack administration process, which was chosen for its speed and efficiency.

The Results

The sale was considered a success because it achieved a better outcome for creditors than a liquidation would have.

Eric Walls stated how ‘’the sale saved a significant number of highly skilled jobs and allowed for the novation of certain finance agreements where there was either no equity or modest equity available in the major pieces of plant and machinery concerned’’.

Overall, the pre-packaged administration process ensured a swift and favourable resolution for the company and its creditors.