Kirkcaldy-based shopfitter and interiors company Havelock Europa said London-based private investment firm Rcapital has backed Havelock with a deal that “secures over 300 jobs and the firm’s manufacturing sites, providing financial stability for the business.”
PwC’s Toby Underwood and Graham Frost were appointed joint administrators of Havelock Europa plc and the business and assets of the company were immediately sold to Havelock International Limited, a newco established by turnaround specialist Rcapital.
“Havelock’s management team will work in partnership with Rcapital to restructure and invest in the business,” said Havelock.
“A key focus will be to ensure that all customer projects are completed in full, the delivery of innovative design, manufacturing and supply arrangements.”
Mark Addley, restructuring partner for PwC in Scotland, said: “We are delighted to have secured a future for the business and employees of Havelock.
“2017 was a very difficult trading year for the business and a combination of the associated losses and tightening credit in recent weeks rapidly led to a liquidity crunch.
“It has proved very difficult to secure a sale against such a backdrop so to have managed to complete a transaction and preserve the employment of over 300 staff in an area where there are very few substantial employers is particularly pleasing.”
Havelock CEO Shaun Ormrod said: “We have been exploring a range of long-term funding options for the business over the past few months to ensure that we are financially strong for the future.
“The team at Rcapital have the expertise to help us take the business forward, driving performance and delivering results.”
Rcapital director Josie Richardson said: “The underlying Havelock business is strong and provides refits for some of the UK’s best-known high street brands.
“We fully support the management and operational teams and will work with them to ensure the best possible customer service and sustainable growth.”
Meanwhile, in a stock exchange statement, Havelock Europa plc said: “Havelock announces that, further to its announcement on 27 June 2018, the company has today appointed Graham Douglas Frost and Toby Scott Underwood, both of PricewaterhouseCoopers LLP as administrators to the company.
“The company now in administration is Havelock Europa plc.
“Administrators have not been appointed to any other companies in the group.
“The company continues to trade with its customers.
“The administrators will provide further updates in due course.
“Furthermore, with agreement of the board, WH Ireland Limited has resigned as nominated adviser and broker to the company with immediate effect.
“Pursuant to AIM Rule 1, if a replacement nominated adviser is not appointed within one month, the admission of the company’s securities will be cancelled on AIM.
“The company has no current intention of appointing a replacement nominated adviser.
“The company’s shares remain suspended pending further notice.”