Dozens of jobs saved at troubled Leeds-based claims group
Administrators from insolvency firm Wilson Field have helped save a group of claims companies based in Leeds, preserving dozens of jobs.
Kelly Burton and Lisa Hogg were called in as joint administrators by the directors of Care Home Claims and MS2U as they fell into financial difficulty.
The companies had their business and assets sold in a pre-packed sale for an undisclosed sum to Acquire Inc. Ltd.
The transactions saw 32 employees transfer to the purchaser.
Kelly Burton, director and insolvency practitioner at Sheffield-based Wilson Field, said: “These companies ran into difficulty following the over calculation of work in progress on a contract, coupled with an accumulation of HMRC arrears.
“The directors contacted us for advice and have worked closely with us to achieve this result.”
Group MD Joseph Battle commented: “Problems were encountered as a result of an unprofitable contract and accrued HMRC arrears which lead to a severe cash flow shortage.
“We took professional advice and worked with the administrators to enable the business to continue as a going concern and preserve jobs of existing staff. Despite this being a very difficult time, the outcome means the business can continue.”
He added: “With the same management team we can assure clients the same high level of service in the future.”
Leeds solicitors Clarion handled and gave advice on legal matters relating to the deal.
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