Irwin Mitchell Advises Begbies Traynor On Deal
The Great Northern Envelope Company (GNE) in Leeds has been acquired by Encore Envelopes Limited after going into Administration on 12 February 2018.
Unfortunately, GNE had experienced some difficult trading conditions, but Tyne and Wear-based Encore Envelopes stepped in to purchase the business, saving 129 jobs.
Established in 1984, Encore Envelopes has a turnover in excess of £28m. It produces nearly three billion printed envelopes from its factory in Washington for the direct mail and transactional markets, serving the same sector as GNE.
Following the acquisition, Russell Croisdale, managing director of Encore Envelopes, commented: “It’s great news that we have been able to purchase the business and assets of GNE as this transaction will provide continuous employment for the company’s experienced and loyal workforce. Importantly, the acquisition, coupled with the ongoing strong financial and technical support which Encore can provide, will also ensure the continuity of supply for all Great Northern Envelope customers from its factory in Leeds.”
Nick Reed and Bob Maxwell of Begbies Traynor in Leeds were appointed as joint administrators of GNE.
Joint administrator Nick Reed said: “While GNE has faced tough trading conditions in recent years, it will benefit from being part of a large, established company like Encore. In the circumstances, the sale is the best possible outcome for creditors, staff and customers.”
Doug Robertson, Restructuring & Insolvency partner at Irwin Mitchell in Leeds, led the team that advised Begbies Traynor.
Expert Opinion“This was a challenging deal with a number of different aspects to it, the team worked through the weekend to achieve a sale against a tight deadline, helping the administrators to save 130 jobs and achieving a good result for the creditors.” Doug Robertson - Partner
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