Supplier of sustainable wood and laminate flooring, Silvan Select, has been sold in a pre-pack deal after entering administration.
Craig Ridgley, of Mercian Advisory Limited, and Phillip Ballard, of Ballard Business Recovery, were appointed as joint administrators of Silvan Select Limited on 28 June 2023.
Upon appointment, administrators sold the business to Blue Bark (Leicester) Ltd, a newco under common ownership, saving 12 jobs, for a total sum of £160,000.
Upon completion, £50,000 was paid in full, with the remaining balance of £110,000 to be paid over a period of 15 months by payments of £7,333.33, starting from the end of July.
The breakdown of the sale included £75,000 as an insurance claim, £18,000 for stock, £15,000 for goodwill and £51,999 for plant and machinery.
With regards to company creditors, there are no secured creditors or employee preferential claims other than former director John Mitchell, who was made redundant following the sale. He is owed around £5,500. Furthermore, the HMRC are owed £300,000 and are likely to receive a distribution but are expected to suffer a shortfall of around £180,000.
At the date of the report, no unsecured creditor claims were filed, although administrators estimate claims totalling £673,000, adding that there will be no funds available to repay any that may come forward.
A statement from administrators said: “The directors of the company attributed the war in Ukraine affecting the supply of raw materials and price increases generally to the failure of the company.
“The assets and business of the Company were subsequently sold following the granting of the administration order and the majority of the employees were transferred to the purchaser immediately following the sale.”