Deloitte 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.

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

3m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

4m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

4m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

5m

Related Articles

Late payments like "crack cocaine" for large businesses

Business Recovery Late payments like "crack cocaine" for large businesses

2m Tom Lemmon
More bad news for Debenhams

Business Recovery More bad news for Debenhams

9m Emanuela Hawker, Reporter
Insolvency and corporate governance

Business Recovery Insolvency and corporate governance

9m Chris Laughton
Impact of Brexit on restructuring and insolvency

Business Recovery Impact of Brexit on restructuring and insolvency

11m Emma Smith, Managing Editor
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

1y Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

1y Russell-Cooke
Carillion collapse: The week so far and industry reaction

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

2y Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

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

2y Emma Smith, Managing Editor