Gordons advises on transaction to help safeguard 230 jobs at Mailway
Friday 19th February 2010
Yorkshire law firm Gordons has acted on behalf of two of the directors of Mailway Packaging Solutions to safeguard the future of the Bradford-based business and its 230 full-time employees.
After a significant reduction in the company’s credit facilities caused a cash flow crisis, Richard Bramma and Tim Lees bought the assets of the contract packer from its administrators to keep the business trading.
Richard Bramma, chief executive of the new company, said: “Mailway has a large workforce, an excellent customer and supplier base and tremendous future prospects and we simply couldn’t bear to see it collapse. So, after considering all the options and on sound professional advice from Jonathan Asquez and the corporate law team at Gordons, we concluded that a pre-pack administration was the only way forward.”
Following the successful completion of due diligence Mailway has now been restructured and new funders will provide a £1.7m working capital facility. The new Mailway Packaging Solutions will offer the same services as before across all three of its sites and aims to continue working with as many of its current suppliers as possible.
Richard continued: “We have fully explained and apologised for the situation to our customers, suppliers and other stakeholders and they know that it didn’t occur due to any mismanagement on our part, more that it was related to the current financial climate.
“To date, our customers have been very supportive and understand these circumstances will have no impact on the service they receive, while our suppliers – although understandably very disappointed – have been remarkably understanding.”
Jonathan Asquez added: “Richard and Tim were absolutely determined to save the business and under their leadership Mailway has a promising future.”