Sara Davies bought back Crafter's Companion in £425,000 deal, documents show

Crafter's Companion founder Sara Davies at the site of the firm's new base where a retail outlet is set to open
-Credit:Reach Publishing Services Limited


Dragons’ Den star Sara Davies rescued her Crafter’s Companion firm in a £425,000 deal after it went into administration with debts of £16.7m, new documents reveal.

Ms Davies bought the firm she had founded as a student out of administration at the start of the year after its investor owners were unable to stem losses. In an interview with Chroniclelive, she called the firm her “third child” and said she had to act when the firm came close to collapse.

An administrators’ report has revealed the firm had debts of £16.7m before being bought out of administration by Ms Davies and her backers. That deal saved 134 of the company’s 148 jobs, though one of its shops in Derbyshire was closed.

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Though founded by Ms Davies, control of the firm had passed to investment group Growth Partners. The report by administrators Interpath reveals that Growth Partners held loan notes on the company totalling £8.2m but is unlikely to see any return on those. Just under £1.9m is also owed to Santander, with the bank likely to receive back some of that money.

The report from administrators Interpath says: “The company was loss-making, recording a loss before tax of £6.7m and £5.1m in the years ended 31 March 2024 and 31 March 2023 respectively.

“The company encountered significant cash flow challenges in November 2024. A long running decline in sales revenue and consequent losses resulted in a cash runway that limited viable solvent alternatives for the company moving forward.”

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The administrators’ report outlines how the firm had around 200 trade creditors at the time of its administration, including a number of North East firms. Also included were suppliers in China and the US, plus claims for sales tax in a number of American states.

Crafter’s Companion had been one of the North East’s fastest growing companies in recent years, with Ms Davies becoming a TV star firstly through appearances on shopping channels selling Crafter’s Companion products and then on Dragons' Den, Strictly Come Dancing and other BBC shows.

After completing a rescue deal for the firm over the Christmas period, Ms Davies told how she feels confident in being able to turn around its fortunes after a tough trading period.

She said: “I am really really confident in the go-forward plan that we have. I know the staff. It’s not me that’s turning this business around - it’s the staff. I’m just leading them.

“We’ve got the right skills and the right people. We’re just going right back to our roots, going back to a strategy that’s worked for years and doubling down on what we’re the best in the world at - making fantastic innovative papercraft products for an enthusiast consumer.”