Real Good Food - Case Update

Rick Harrison and Will Wright of Interpath Advisory, the joint administrators of Real Good Food PLC (AIM:RGD) and subsidiary JF Renshaw Limited, have provided an update on the likely fate of the companies in the aftermath of their pre-pack sale.

Real Good Food is the ultimate parent of Liverpool-based specialist bakery goods manufacturer JF Renshaw. It was primarily a holding company whose only realisable asset was its intellectual property. JF Renshaw held the majority of the tangible assets.

The companies entered administration on 4 December, 2023 after announcing that performance had been constrained by supply issues and cash constraints and that sales for November and December were lower than previously forecast.

A pre-pack sale to British Bakels was completed for total consideration of £10.75 million, which was paid immediately on completion. £180,000 was attributable to the Real Good Food in respect of the IP assets, while £10.57 million was attributable to JF Renshaw. 189 jobs (all JF Renshaw employees) were saved, while the two employees who worked for Real Good Food were made redundant.

Since the sale, the joint administrators have focused on any other potential asset realisations. They are pursuing an insurance refund potentially owed to Real Good Food, as well as a sale of JF Renshaw’s long-leasehold property located near Bristol.

Distributions to secured creditors Leumi Abl Limited (£6.14 million) and HUK 122 Limited (£2.75 million) have been made from fixed charge realisations only. Downing LLP and Omnicane Limited are also anticipated to receive distributions as the next-ranking secured creditors. It is not anticipated that there will be a distribution to any other class of creditor.

The administrators’ latest report on Real Good Food can be found HERE, and the report for JF Renshaw can be found HERE.

The joint administrators have been assisted by Squire Patton Boggs, Primas Law, SIA Group, CBRE and Alder King.