Several companies within the forging industry knew of Hull Forgings suffering from financial difficulty in the lead up to administration, therefore quite a few were interested in acquiring assets in a quick and undisruptive way.
26 jobs were saved and transferred over to Henry Williams in the pre-pack deal and customer orders have now resumed.
The sale took place immediately after Keith Marshall and Willie Duncan of Baker Tilly were appointed joint administrators on the 7th February.
Marshall stated, ‘The sale represents a good outcome for the majority of the company’s stakeholders and ensures a traditional manufacturing business in Hull now has better prospects than the alternative of liquidation and immediate closure, which it would definitely have faced if a buyer had not been found.’
This is a great result as the business and staff can continue with Henry Williams. Pre-pack administrations deals are arranged quickly and usually in one swift movement, allowing the transfer process to run smoothly. They can be a good alternative to Company Voluntary Arrangements to help protect the business against aggressive creditors.