Stoke-based Swift Electrical Wholesalers (S-O-T) has been sold in a pre-pack deal, a move which saves more than 30 jobs.
Howard Smith and Tim Bateson from Interpath Advisory were appointed joint administrators to the business, which is a wholesaler and distributor of kitchen appliances, taps and sinks, on 17 June.
The administrators said the company has encountered “significant challenges” over the last 12 months, including the loss of a main customer which also resulted in the loss of a key supplier, which impacted profitability.
This, in turn, then led to increasing cash flow pressure. In addition, the company has been loss making as it has had difficulty recovering from the pandemic period with changes to its product portfolio. In response to this, the directors recently implemented a turnaround plan but the business has not yet returned to profitability.
As a result of these mounting pressures, the directors sought to undertake a review of their investment, refinance and sale options. When it became clear that a solvent solution could not be found, they took the difficult decision to seek the appointment of administrators.
Immediately following their appointment, the joint administrators sold the business and assets of Swift Electrical Wholesalers (S-O-T) Limited to The Recycling Group Limited, a connected party. A total of 34 members of staff have transferred to the purchaser as part of the transaction.
Howard Smith, managing director at Interpath Advisory and joint administrator, said: “The continuing difficulties with product shortages seen during the pandemic, along with the loss of both a key customer and supplier, had a significant impact on the company. We’re pleased to have been able to conclude this transaction, safeguarding the future of the business and saving 34 jobs. We wish the team all the very best for the future.”