Kroll secures sale of Kesslers International

18 January 2022 Consultancy.uk 1 min. read
Profile
More news on

Kesslers International has been sold out of administration. Experts from Kroll helped secure the deal.

Since 1888, Kesslers has been trading across the UK. The country’s oldest point-of-purchase designer and manufacturer collapsed under the impact of the coronavirus pandemic on the retail sector and cost inflation, however.

In December 2021, Michael Lennon and Philip Dakin were appointed as Joint Administrators of the firm. At the time, 160 staff worked at the £25 million-turnover business, but the majority of these were made redundant according to the administrators.

Kroll secures sale of Kesslers International

Speaking at the time, Lennon noted, “Attempts to diversify and grow the business through an outsourced supply model were not delivered successfully and it has not been possible to return the company to profitability. The continued underperformance in trading and rising costs has resulted in a weakened cashflow position which has led to the appointment of the joint administrators. The joint administrators have taken steps to restructure the trading operations, which has resulted in 125 redundancies.”

A month later, however, the remaining jobs have been preserved. The administrators have confirmed the sale of the business and its assets as a going concern.

Lennon stated, “We are absolutely delighted that we have been able to secure the future of the UK’s oldest supplier to the point-of-purchase sector. As a result of the sale, the business and assets of the company will transfer to the new owners. Employees will also be transferred under TUPE regulations.”

The move is expected to preserve a longstanding business, while providing continuity of employment for a number of employees, and an opportunity of employment for others in the area. New owner GB Sign Solutions is part of the PFI Group, and is a high-specification manufacturer for the signage industry, based in Manchester. It provides high-quality sign and advertising solutions to multi-nationals, small to medium sized businesses, government authorities and self-employed enterprises.