Done Deal! Stoke-on-Trent firm saved hours after collapsing into administration

Dozens of jobs have been saved - hours after a loss-making Stoke-on-Trent company collapsed into administration. Thirty-four workers had faced an uncertain future after administrators were appointed at Swift Electrical Wholesalers (S-O-T) Limited.

But The Recycling Group immediately stepped in to buy the company and its assets. The deal was struck this week.

Swift Electrical Wholesalers (S-O-T) Limited - on Fenton Industrial Estate - is a wholesaler and distributor of kitchen appliances, taps and sinks. Interpath Advisory was appointed administrator on Monday.

Administrator Howard Smith said: "The company has encountered significant challenges over the last 12 months, including the loss of a main customer which also resulted in the loss of a key supplier, which impacted profitability. This, in turn, then led to increasing cash flow pressure. In addition, the company has been loss making as it has had difficulty recovering from the pandemic period with changes to its product portfolio. In response to this, the directors recently implemented a turnaround plan; however, the business has not yet returned to profitability. As a result of these mounting pressures, the directors sought to undertake a review of their investment, refinance and sale options. When it became clear that a solvent solution could not be found, they took the difficult decision to seek the appointment of administrators.

"We are pleased to have been able to conclude this transaction, safeguarding the future of the business and saving 34 jobs. We wish the team all the very best for the future.”

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