BusinessBusiness RecoveryPickfords sold in pre-pack to offload pension liabilities

Pickfords sold in pre-pack to offload pension liabilities

BDO administrators sell Pickfords to management to offload its defined benefit pension

Pickfords sold in pre-pack to offload pension liabilities

REMOVAL FIRM Pickfords has shifted its defined benefit scheme off its balance sheet through a management buyout following a prepack administration which took place at the end of November. Unsustainable pensions obligations and the economic climate were the reasons stated for the administration.

BDO partners David Gilbert and Danny Dartnail were appointed joint administrators, and they sold the firm back to directors Yogesh Mehta and Timothy Romer, Accountancy Age’s sister publication Professional Pensions reports. 

A pre-pack administration entails the whole or part of a sale arranged prior to a business entering an insolvency process and sold immediately on appointment of administrators.

As a result, the firm’s pension obligations have been removed, but all of its 900 jobs have been preserved.

Administrators could not confirm if the Pensions Protection Fund (PPF) has been informed of the insolvency and subsequent pension scheme liabilities.

Usually, once notified, the PPF would undertake a validation of the scheme which could take 28 days or more.

A spokesman for the administrators said the pension obligations threatened the future viability of the business.

He added: “With the transfer of the business to the new company, the unsustainable pensions obligation has been removed, allowing the business to move forward on a secure financial footing.

“This was the only option available to ensure the continued viability of the business and preserve jobs.”

Related Articles

SFP sells off Pixel Projects and saves all staff

Business Recovery SFP sells off Pixel Projects and saves all staff

11m Stephanie Wix, Writer
Administrators from KPMG appointed to City Motor Holdings

Business Recovery Administrators from KPMG appointed to City Motor Holdings

1y Richard Crump, Writer
Begbies Traynor appointed administrators of William Anelay

Accounting Firms Begbies Traynor appointed administrators of William Anelay

1y Richard Crump, Writer
CVR Global sells DMG Steelworkers out of administration in pre-pack deal

Accounting Firms CVR Global sells DMG Steelworkers out of administration in pre-pack deal

1y Richard Crump, Writer
CVR Global administrators appointed at foreign language school

Accounting Firms CVR Global administrators appointed at foreign language school

1y Richard Crump, Writer
Smith & Williamson appointed administrators of 4Children

Accounting Firms Smith & Williamson appointed administrators of 4Children

1y Richard Crump, Writer
Cowgill Holloway concludes sale of film distributor Metrodome

Accounting Firms Cowgill Holloway concludes sale of film distributor Metrodome

1y Richard Crump, Writer
FRP Advisory sells Harland Machine Systems to Accraply Europe

Accounting Firms FRP Advisory sells Harland Machine Systems to Accraply Europe

1y Richard Crump, Writer