Following the administration of HMC Health & Beauty a week ago, joint administrators Julian Pitts and Bob Maxwell of Begbies Traynor in Leeds have secured the sale in the business with 110-strong workforce.
Established in 2000, HMC Health & Beauty is reliant with a 42,000 sq . ft . facility in Thetford, Norfolk. This company developed from your contract manufacturing operation use a full service facility to brand owners across an easy range of toiletries and maintenance systems.
During 2013 the business lost a single, but significant customer after it was acquired with a competitor.?Whilst turnover had been rebuilt with customers, consequential trading losses were sustained.
Ultimately, and despite cash injections by shareholders, these losses, compounded by constraints to the company’s banking facilities, creditor pressure and, famously, the business’s first material bad debt, ended in generally cashflow issue. This concluded in HMC Health & Beauty appointing Begbies Traynor, the company rescue and recovery firm, to advise it.?Begbies Traynor managed to undertake an accelerated marketing exercise before the administration which led to a pre-pack sale to the unconnected 3rd party.
The business and assets of HMC Health & Beauty are acquired by the new company, Prestige Personal Care, whose directors have some of other complementary businesses during the cosmetics and toiletries sector.
“It is very good news that HMC Health & Beauty has long been acquired for a going concern by way of purchaser which includes a strong track record during the sector,” said Joint Administrator Julian Pitts.?”Not only manages to do it signify the business continue to trade, safeguarding the livelihoods from the staff, it also puts it on a more reassured footing money for hard times.”
