Wednesday September 15, 2021

FRP’s Restructuring Advisory team completes sale that transfers assets to a new venture led by Bargain Buys

Our Restructuring Advisory team has secured the sale of particular assets of JTF Wholesale Limited (t/a JTF Mega Discount) to a new venture led by Bargain Buys, which could see up to nine stores reopen under licence.

Marco Piacquadio and Nathan Jones, Partners in our Restructuring Advisory team, were appointed as Joint Administrators to JTF Wholesale Limited, which operated a chain of 14 discount stores in the North and Midlands.

The appointment of the Joint Administrators followed a challenging trading period for the business and a series of unsuccessful restructuring processes that led the Directors to cease trading and make all staff redundant.

Following an extensive sales process, which our team conducted pre and post-appointment, we are pleased to have secured the sale of the Company’s brand and other assets to a venture led by Bargain Buys – a discount store chain and subsidiary of Poundstretcher. As part of the sale, which includes stock, equipment and intellectual property rights, the new ownership team has purchased the licence to operate nine JTF Mega Discount stores.

Marco Piacquadio, Partner in our Restructuring Advisory team, said: “We wish the business venture all the best as it looks to rebuild the business, reopen certain stores and trade online.”

“As part of our role, we are also committed to working with the Pensions Regulator and Redundancy Payments Service to support around 500 former employees who were made redundant by the former Directors of the business prior to our appointment. Our specialist employment team is helping to process claims.”

Legal advice was provided to the Joint Administrators on the appointment and related transaction by a team led by Carl Mifflin from Howes Percival, as well as Trevor Palethorpe of instructed agents John Pye.