Moorfields secures buyer for manufacturing company
Yorkshire sample book manufacturer Travelfast has been sold out of administration, just a two days after appointing professionals from Moorfields Advisory to oversee the procedure. The firm had struggled after it was acquired by a private equity firm in March 2019, and had signalled it was likely to enter insolvency at the turn of the year.
Established in 2009, Travelfast designs and manufactures sample books, shade cards and other display products. Trading under the name Sampling International, the Batley-based company endured a difficult 2019, as it struggled to integrate effectively with the portfolio of the company it was purchased by.
Bath-headquartered private equity investor Chelverton Equity Partners (CEPS) acquired the business in March 2019, with the intention of making Travelfast a complimentary part of CEM Press – consisting of CemTeal and Travelfast. Unfortunately, the companies were unable to align their production base and the desired synergies did not take effect. The costs of the merger led to working capital constraint and, in turn, increasing creditor pressure on the business.
In December, CEPS announced that the companies had filed a notice of intention to appoint an administrator. On January 15th 2020, this saw more than 100 jobs jeopardised as administrators from Moorfields Advisory were installed.
Fortunately, the professionals from Moorfields were able to act quickly to rescue the West Yorkshire-based manufacturing company through a pre-pack Administration sale. The news was announced just two days after their appointment, and Travelfast will now continue to trade.
Tom Straw, one of the joint administrators, said, “We are delighted to have secured a sale for Travelfast Limited and rescue over 100 jobs. There is still a strong market need for their products and we wish the company every success in the future.”
Moorfields was also recently installed to oversee the administration of troubled toy retailer Hawkin’s Bazaar. Despite entering the news, Moorfields said that stores will continue trading “until further notice,” though the majority of stock will be subject to clearance discounts and other promotions.
