Rescue deal saves 23 jobs at Wakefield greetings cards publisher
23 jobs have been saved after a Wakefield greetings cards publisher was bought out of administration.
The deal was negotiated by joint administrators Julian Pitts and Bob Maxwell of Begbies Traynor.
Founded in 2010, Riverside Plus Limited provided wholesale distribution direct to retailers throughout the UK.
The company was placed into administration on 6th February 2017 following issues associated with managing its field servicing.
It had outsourced this function to a field merchandising company which failed to deliver improvements and added to its cost base, leading to Riverside Plus experiencing cash flow problems.
In January 2017, Begbies Traynor was appointed to provide insolvency advice and undertake an accelerated marketing campaign.
A sale was subsequently agreed on 6th February 2017 for the business and certain assets of the company to Riverside Greetings Limited, a new company with a shared director.
Joint administrator Julian Pitts commented: “Upon being appointed to advise Riverside Plus, our primary aim was to speedily find a purchaser for the business to enable it to continue trading – by quickly securing a sale we were able to avoid any disruption to customers or damage to the company’s reputation.
“The sale has not only provided the best possible return for creditors, it has also preserved all the jobs and, in the hands of an experienced director, it has a more secure future ahead.”