One such business is Wembley-based Abacus Print, which, according to its Statement of administrator's proposal, had taken various measures to try to offset the severe impact of Covid restrictions that resulted in its turnover plummeting.
The six-staff print business, run by husband and wife team Alison and Jonathan Luck, took a CBILS loan in 2020 and further loans from the owners during 2021 to try to keep the business afloat. It also cut costs by moving into a larger, shared premises with another printer, but its rising debts were ultimately insurmountable and the business filed a notice of intention to appoint administrators on 3 March, with Richard Rones of Thornton Rones administrators appointed on 22 March.
After an initial evaluation, the business was marketed with a range of offers from £24,000-£36,000 received. The latter offer, plus 7.5% of turnover generated in the first 12 months, was offered by The 6IX Agency, a business incorporated in November 2021 by Abacus managing director Jonathan Luck.
The business was bought by The 6IX Agency on 31 March in a connected party pre-pack sale. All jobs were retained.
According to the administrator’s proposals dated 22 May 2022, Abacus owed £50,000 to HMRC and had received claims totalling £24,338 from two unsecured creditors, while 18 claims to the value of £240,458 were still outstanding.
The estimated returns to preferential and unsecured creditors will be 100p and 2.66p in the pound respectively.
Printweek contacted Jonathan Luck who said that due to the sensitive nature of the situation with some stakeholders, he could not comment.
Elsewhere, graphic design and printing platemaker RR Flexo has also been sold a pre-pack sale after directors of the company, Andrew Dodd and Richard Lambert, appointed joint administrators Eric Walls and Wayne Harrison of KSA Group on 3 May.
According to its Statement of administrator's proposal, the business, based at Flexo House, Threxton Road, Thetford had been struggling for some time, entering a company voluntary arrangement (CVA) in October 2020, overseen by Walls and Harrison of KSA Group. The CVA aimed to help the business pay down its secured and unsecured creditor debts by 31 December 2025, with the latter to receive dividend payments at 40p in the pound.
However, Covid hampered repayments and they were deferred for a period of three months over April to June 2021. Additionally, the company lost a significant customer meaning it was unable to continue with the CVA and the arrangement failed.
Concurrently, rubber manufacturing business Parflex, set up in 2012 by business partners Dodd and Lambert, was in voluntary liquidation with an inter-company debt of £221,300 owed to RR Flexo, applying further pressure to the latter’s estimated £3m debts.
A notice of intention to appoint administrators was filed on 12 April and the business was marketed by Charterfields, from 13 to 20 April for pre-pack sale as a going concern.
Eleven expressions of interest were received and ultimately resulted in one offer from an RR Flexo customer, Povoas Packaging.
The unconnected party pre-pack sale concluded on 3 May for £40,000 and included a licence for the business to temporarily occupy the property while Povoas negotiates a lease.
Polythene manufacturer Povoas Packaging is owned by Simon Povoas who is a director at the business along with Jonathan Kendall. All staff were transferred under the sale.
Administrators will continue to try to recoup debts owed to the former iteration of RR Flexo, through an administration vehicle company, Threxton Road 123. Meanwhile Povoas’ acquisition vehicle Ensco 1450 has changed its name to RR Flexo and the business continues to operate as normal.
Povoas Packaging did not respond to a request for comment.
