Creditors of Parry Group will be “significantly better off” after the business was this week sold as a going concern, according to the insolvency practitioner brought in to help keep the company afloat.
As revealed on Monday, Parry Group was acquired by a newly-created entity called ‘Parry Catering Equipment (Midlands) Ltd’ in a move that secured the future of the 70-year-old businesses after it encountered financial difficulties.
Wilson Field, which was appointed on 5 December to assist with the sale, said the deal will mean creditors receiving an estimated dividend of 31p in the pound rather than 13p. It will also allow Parry Group to avoid claims through the National Insurance Fund for any redundancies.
All 70 jobs have been saved at Derby firm, which designs and manufactures stainless steel equipment and furniture, specialising in catering and clinical environments. Some of employees have been with the company for more than 30 years.
The total value of the deal is undisclosed but includes the business and the assets of the company based on Town End Road in Draycott.
Parry had experienced a difficult trading period resulting in possible enforcement action by HMRC.
Lisa Hogg, director and insolvency practitioner at Wilson Field in Sheffield, said: “The company had experienced a difficult trading period resulting in the accumulation of VAT arrears. The threat of enforcement action by HMRC resulted in the directors seeking advice from Wilson Field.
“We estimate that the pre-pack transaction will result in a better outcome for creditors by more than 18p in the pound and no claim will be made from the National Insurance Fund in respect of redundancy payments.
“It is always satisfying when old established business can be saved. From what was a difficult situation has emerged a good result for creditors and staff.”
Parry Group managing director Mark Banton, who will lead the business under its new ownership, said: “This has been a difficult period but I am pleased with the outcome. We are now looking forward to a bright future with the same team, the same high quality products and continuing our high service standards.
“It is testament to the effective teamwork between all parties that this deal was turned around so quickly and gratifying that as an established local manufacturer we can continue to trade.”
Parry operates three divisions; Commercial Catering Equipment, Stainless Steel Furniture and Parry Electrical.