Around 100 jobs have been saved at a Newton Abbot commercial cleaning company thanks to swift action by the Administrators, Jonathan Williams and Jeremiah O'Sullivan of Bishop Fleming LLP.
Daccombe-based Betterclean (Services) Limited, run by Daniel and Lisa Van Kuyk, specialised in providing commercial cleaning services to businesses across England and Wales.
Although the company was profitable, it faced a winding up action by HM Revenue & Customs for historic tax debts, putting the jobs of its 100 full-time and part-time staff at risk.
The company appointed Exeter-based business recovery specialists and top 40 accountants Bishop Fleming LLP to help the company move forward. The firm engaged with agents Lambert Smith Hampton to market the business to over 3,500 parties to establish if any firms would be interested in acquiring the Company or its business and assets, and 10 expressions of interest and 3 offers followed.
The directors of Betterclean (Services) Limited, who also have another trading Company called Betterclean (Services Franchising) Limited, based in Newton Abbot, also made an offer of £50,000 for the business assets and work in progress which was by far the best offer. On the advice of Lambert Smith Hampton, this offer was accepted and the deal was completed on 6 September 2017 following the Administrators' appointment, with all existing employees transferred to the purchaser.
All jobs were safeguarded and significant creditor claims were eliminated.
The Bishop Fleming team was headed by Partner Jonathan Williams, assisted by Luke Venner and Malcolm Rhodes.
Jonathan Williams said: “I was very pleased to be able to achieve a rapid sale of the business to protect the jobs of around 100 people. There was very little time to complete the sale before the Company faced being wound up with all jobs lost. Betterclean (Services Franchising) Limited was the best fit and the only company we spoke to that was prepared to pay an acceptable price and take on all the employees, allowing us to complete the sale in a short time, minimising uncertainty and disruption for the employees and the company's clients. The net result was a significant improvement over a liquidation.”
Karen Dunstone of Michelmores LLP assisted with the deal.