Thirty jobs have been saved at a Warwickshire audio visual company following the intervention of a local insolvency specialist.
Members of staff at Rugby company Piccadilly AV, which specialises in supplying audio visual equipment all over the world, had feared they may be made redundant.
But the workers have all hung on to their jobs after Rugby recovery and insolvency specialist Bridge Newland stepped in and managed to find a buyer for the firm.#
Piccadilly AV had been trading for ten years when bad debts, cash flow and staffing costs meant the owners could no longer afford to run the business in its existing form.
Threatened with liquidation by HMRC, they called in Bridge Newland who within just two weeks managed to sell the company.
The sale also ensured the Piccadilly AV’s creditors will be paid back far more than they would otherwise have received.
Bridge Newland adopted a pre-pack administration approach which it said was good news for staff, customers and creditors.
Managing director Ben Robson successfully negotiated a sale price of 33 per cent more than was initially requested.
Mr Robson said the transition from the existing to the new employer was “seamless”, with pay and conditions maintained and goodwill was retained.
He added that there was no break in trading or any negative publicity about potential closure.
“The new owner, Universal AV Services, now trading as Piccadilly Live, was one of Piccadilly’s competitors, and has branches in other parts of the UK,” said Mr Robson.
“This acquisition gives them new customers in a previously untapped area. As a large company it has better cash flow, is more effectively run and can benefit from greater economies of scale which were not available to the previous owners.”
Creditors are expected to end up with around 50 per cent of their debt being repaid compared to an anticipated 25 per cent had the business not been sold.
Mr Robson said this was as a result of being able to sell the assets and realise more of the debts because of continued contact between the company and its customers.