A high end furniture manufacturer is looking forward to a more comfortable future after it was bought out of administration by a team led by its former directors.
Ultra Furniture, which supplies hand-made upholstered furniture to many big name retailers from its factory on Pensnett Trading Estate, was forced to call in administrators following the loss of a major customer in February this year.
Detailed and complex negotiations followed but with the support of the insolvency team at Midlands’ law firm Higgs & Sons the management, backed by outside investors, was able to buy back the business and the ‘Ultra’ name from administrators.
David Ellis, a partner at Higgs & Sons and head of the firm’s insolvency team, said: “It was a complex deal which also involved advisers from Higgs’ commercial property, employment and corporate departments.
“A number of funding streams were utilised in order to make the relevant payment to the administrator and fund ongoing trading. It was also necessary to act quickly to minimise the loss of goodwill and avoid disappointing customers who had placed orders with the firm.”
The deal has secured the future for Ultra’s 116 employees. It now hopes to develop the business further and to expand in the medium term.
Glenn Aston at Ultra Furniture commented: “It was a difficult time for us after losing such a significant customer earlier this year and having to lay off staff as a result
“But we are relieved to have preserved this important local manufacturing operation on which so many livelihoods continue to depend.
“We were particularly grateful that Higgs & Sons was able to move quickly to help secure the business for the future.”
David Ellis concludes: “This was very much a team effort drawing upon specialists from various legal disciplines. We were all extremely pleased to be instructed in connection with such a high profile, local company.”
Higgs & Sons, based at offices on the Waterfront Business Park in Brierley Hill, boasts more than 100 specialist lawyers including those with particular expertise and experience in insolvency matters.
For further details go to www.higgsandsons.co.uk