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14 December 2017

Mercer & Hole preserve the jobs of over 70 employees and 120 temporary staff

On 1 December 2017 Joint Administrators, Steve Smith, Chris Laughton and Henry Page of Mercer & Hole Chartered Accountants, completed the sale of the business and certain assets of Cinram Logistics UK Limited ("Cinram") to Cinram Novum Limited, part of Patriot Group Investments Limited, preserving employment for more than190 employees and temporary staff.

 

For over 40 years, Cinram has provided supply chain solutions to the Fast Moving Consumer Goods (FMCG), home entertainments and retail industries. Earlier this year the company's financial future was plunged into doubt following an announcement that its major customer, responsible for two-thirds of Cinram's turnover, would terminate its contract at the end of June.

Mercer & Hole partners, Steve Smith and Henry Page, worked closely with Cinram's directors to minimise the financial impact from the loss of this significant contract and assisted with the reorganisation of its business. After completion of the contract Cinram required further restructuring and on 10 August 2017 Steve Smith, Chris Laughton and Henry Page were appointed Joint Administrators of Cinram. Administration allowed Mercer & Hole's Corporate Advisory team to execute the restructuring strategy, developed with the directors, in order to realise value from the financially distressed business. The restructuring strategy concluded with the successful sale of Cinram's business and certain assets, preserving jobs and maintaining services for its clients.

Steve Smith, lead Administrator, commented: "The sale of the business to the Patriot Group brings to an end a long period of uncertainty for Cinram's staff, customers and suppliers and we are delighted to have reached this successful conclusion after what has been a challenging time for all of those involved with the business. Preservation of a continuing operation in Aylesbury is testament to the hard work and dedication of the employees and directors of Cinram who have continued to provide an exceptional service to the company's customers during the course of the administration."

Patriot Group Investments Limited own a number of logistics companies and the acquisition by Cinram Novum Limited complements their portfolio.

Should you or your client wish to discuss or require advice, please do not hesitate to contact a member of our Corporate Advisory team.

 



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