Baines & Ernst saves Company from Compulsory Liquidation, and 19 Jobs in the Process

Baines & Ernst Corporate Limited were approached for advice by the Company's director, Mrs Caroline Peebles Brown. The Company were under increasing pressure from HM Revenue & Customs over an historic debt relating to when the business was purchased by Mrs Peebles Brown in 2008.

HMRC were about to issue a Winding-Up Petition for the Company to go into Compulsory Liquidation, with a likely closure of the factory and the loss of 19 jobs.

On advice from Imogen Davidson, Insolvency Practitioner and Director at Baines & Ernst Corporate, Mrs Peebles Brown chose to put the Company into Administration to protect it from action by HMRC while a rescue plan could be formulated.

The Company went into Administration on 27 January 2012, with Imogen Davidson appointed as Administrator.

The Company was working on a number of high profile contracts at the point of entering Administration and these were continued with no interruption to service. In tandem with a short period of successful trading, the business was marketed for sale on a confidential basis, with a number of potential investors expressing interest. A sale of the business and assets of the Company was completed on Friday 3 February 2012 to Class Creations Limited, an existing company owned and managed by Mrs Peebles Brown.

All 19 staff were transferred to the purchaser on 3 February 2012, with no redundancies.

The staff and directors worked with the Administrator, Imogen Davidson, to achieve a very successful outcome. The business is continuing to provide the same high quality service it has always maintained. It is also likely that creditors may receive a dividend of up to 30p/£ once the Company's debtors are realised.

Mrs Davidson commented: "It is a successful outcome for all when Administration works to save a business and protect staff jobs. Customers were supportive of the Administration and are continuing to work with the purchaser. When you compare the result to a Compulsory Liquidation, with the likely loss of all staff jobs and a nil return to creditors, it is clear the right decisions were made".