Baines and Ernst Corporate Rescue Suprema Concepts Limited From Compulsory Liquidation

Business recovery firm, Baines and Ernst Corporate, have saved Suprema Concepts Limited from collapsing, after the firm was threatened with a winding up order from the taxman over an unpaid historical debt.
Suprema Concepts approached Baines and Ernst Corporate for advice after it became clear that the 19 staff were about to lose their jobs and the company forced to shut down.
Financial help and advice for businesses
The business was purchased by Suprema Concept’s director, Caroline Peebles Brown in 2008, but HMRC discovered an unpaid debt which related to when the sale was completed. HMRC had increasingly pressured Suprema Concepts to pay out and was about to force the company into compulsory liquidation when Baines and Ernst Corporate became involved.
The Insolvency Practitioner at Baines and Ernst Corporate, Imogen Davidson, advised that Suprema Concepts should be placed into administration whilst a longer term solution was identified. Whilst going into administration is something that many firms actively resist, in some cases it can be a beneficial move and for Suprema Concepts, it protected them against the threat of being wound up and liquidated by HMRC.
On 27 January 2012, Suprema Concepts went into administration, with Imogen Davidson appointed as the Administrator.
The swift action meant that Suprema Concepts could continue to trade whilst a final solution was sought by the Administrator and several high profile contracts were able to continue during this period. Customers experienced no interruption in the service they received and were largely unaware of the internal turmoil the firm was experiencing.
How Baines & Ernst Corporate helped
The Administrator opted to put the business up for sale, but marketed it on a confidential basis, with the result of receiving several offers of interest from investors. However, Class Creations Limited, another company managed and owned by Mrs Peebles Brown, was the successful bidder and the business and assets were transferred on 3 February 2012.
Imogen Davidson confirmed that all existing 19 members of staff had been transferred to the new ownership with no redundancies, a much hoped for outcome for everyone.
Mrs Davidson acknowledged the success of the move for Suprema Concepts and said that administration can be considered as having been a victory when jobs are protected and the business is able to continue. She said that the customers of the firm had been 'supportive' of the administration and were now working with the new owner of the firm. Mrs Davidson added that compared to the possibility of compulsory liquidation and the prospect of all jobs being lost, it was 'clear' that administration was the right move for the business.

Baines & Ernst Corporate specialise in providing help and advice to businesses in financial difficulty. For more information, please speak to Baines and Ernst Corporate.