More than sixty jobs have been saved at Northamptonshire-based Roma Leather Collection Limited, after it entered into administration on 15th January 2018.
Joint Administrators Steven Stokes and Miles Needham, Partners in our Birmingham and St Albans offices, with the assistance of their lawyers Squire Patton Boggs (UK) LLP, secured the sale of the business and its assets to an independent third party, Roma Leather Limited (“RLL”) backed by a private equity house, SKG Capital. RLL, will continue to trade from the existing site in Naseby, with all employees transferring across to the new business.
The business manufactures and sells high quality leather belts to both national and international retailers. It found itself in financial difficulty after relocating premises, which not only absorbed a significant amount of capital but also disrupted production thereby impacting cash flow.
Commenting on the transaction, Steven said: “This was a positive outcome for all concerned. By securing a going concern sale we have not only been able to maximise realisations for company creditors but also limited disruption to customers, and with a solution that secures the employment of all company staff.”
According to Steven, the ability to reach this outcome was greatly improved by the business and its lenders seeking restructuring advice at the first signs of trouble. He added: “Our involvement early on meant we had enough time to work through all the options available to the business with the directors. Through marketing the business and its assets for sale to our extensive contact base, we’ve been able to find a solution that’s best for creditors, customers and employees. We wish the business and all of the employees all the very best for the future.”