Administrators have sold the Leeds-based post house VTR North and its assets to CNBB Ltd, a new company set-up by four of its directors.
The pre-pack deal will allow the new owners to continue to trade under the VTR North name and includes a transfer of all seven of its employees.
Jason Elliott and Craig Johns from the Manchester office of Cowgill Holloway Business Recovery were appointed as joint administrators of VTR North on 27 October.
During a marketing campaign that straddled their appointment, the administrators said they received four expressions of interest and two offers for the business. The sale to CNBB was completed on Friday (30 October).
Elliott told Broadcast that he felt the deal was in the best interest of creditors and staff. He said: “The sale to the associated company was the only remaining offer at the time of the sale but, that notwithstanding, it ensured the continuity of the employment of the workforce and with the on-going involvement of existing management it underpinned the collection of the debtor ledger thereby ensuring that creditors would receive maximum return.”
VTR North directors Spencer Bain, Christopher Birks, Peter Connolly and Robert Noble formed CNBB Ltd on 15 October.
A fifth VTR North director, founder Carl Walters, is not part of the new company.
Bain said that with their “combined experience and knowledge of this sector” the new deal “ensures a long-term viable future for the business, and its employees and customers.”
As Broadcast went to press it was unclear what caused the company to become insolvent, but Bain told Broadcast in October that the post firm needed to restructure following the “fallout” of the closure of its Manchester office, which was shut in December last year.”
Outstanding VTR North Ltd creditors will be able to lodge any claims following the publication of a report that is due to be drawn up by the joint-administrators in the coming weeks.