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Purchase cushions blow for Ultra
Article date: 08/09/2016
A high end furniture manufacturer and its employees are looking towards a much 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 from its factory on Pensnett Trading Estate to many big name retailers, had been suffering financial problems after the loss of a major customer in February this year. The Company was forced to call in administrators, however the management, backed by outside investors and supported by the insolvency team at Higgs & Sons, bought back the business and the "Ultra" name from its administrators.
"It was a complex deal also involving advisers from Higgs' commercial property, employment and corporate departments," explains partner, David Ellis who heads the firm's insolvency team.
"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.
"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," comments Glenn Aston at Ultra Furniture. "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."
Caption (L-R): Glenn Aston, Ultra Furniture and David Ellis, Partner at Higgs & Sons.