110 jobs saved as Thetford-based HMC Health & Beauty is rescued from administration
PUBLISHED: 16:56 11 May 2016 | UPDATED: 11:59 12 May 2016
A total of 110 jobs have been saved at a Thetford-based personal care products business following its sale by administrators.
Julian Pitts and Bob Maxwell of business rescue and recovery firm Begbies Traynor were appointed joint administrators of HMC Health & Beauty earlier this month.
They have now completed the sale of the business under a “pre-pack” deal to a new company, Prestige Personal Care, whose directors are unconnected with HMC but have a number of other businesses in the cosmetics and toiletries sector.
Mr Pitts said that, in 2013, HMC lost a major customer after it was acquired by a competitor and trading losses were sustained while efforts were made to replace the lost turnover.
However, despite cash injections by shareholders, these losses – compounded by constraints on the company’s banking facilities, creditor pressure and, more recently, a significant bad debt – ultimately resulted in a severe cash flow issue.
“Begbies Traynor was able to undertake an accelerated marketing exercise prior to the administration which resulted in a pre-pack sale to an unconnected third party,” said Mr Pitts.
“It is very good news that HMC Health & Beauty has been acquired as a going concern by a purchaser with a strong track record in the sector. Not only does it mean that the business will continue to trade, safeguarding the livelihoods of the staff, but it also puts it on a more secure footing for the future.”