BusinessBusiness RecoveryDeloitte administrators sell Morrisons training provider in pre-pack

Deloitte administrators sell Morrisons training provider in pre-pack

Training provider sold in pre-pack - but Morrisons contract excluded

DELOITTE ADMINISTRATORS has sold Morrisons training provider Elmfield via a pre-pack, saving more than 300 jobs.

Dan Smith, Dominic Wong and Paul Meadows from Deloitte, were appointed joint administrators of Elmfield Training, a vocational training provider based in Warrington and sold the business to EQL Solutions, a subsidiary of CareTech.

However, the Morrisons contract was not part of the deal and is likely to be taken over by another provider along with about 50 staff associated with that contract.

Elmfield employed about 350 staff with about 300 of them moving over to EQL Solutions as part of the deal. The pre-pack has managed to maintain around 5,700 places for those already enrolled in a training programme.

Smith said: “The sale ends a period of great uncertainty for employees and ensures disruption to learners is minimised.”

“Elmfield was historically profitable, but incurred a loss before tax of £6.4m in 2012. Whilst underlying profitability was restored in 2013, the company’s cash position continued to worsen.”

According to the Liverpool Daily Post, Elmfield was paid more than £60m in public cash to train apprentices for Morrisons. However, it later became the centre of a government inquiry after claims it falsified records in a big to claim extra state money.

Related Articles

How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4w Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

1m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

1m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

2m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

2m Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

3m Emma Smith, Managing Editor
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

8m Emma Smith, Managing Editor
Kingston Smith liquidators to distribute millions to Bond International Software PLC members

Accounting Firms Kingston Smith liquidators to distribute millions to Bond International Software PLC members

1y Stephanie Wix, Writer