Surepak - Case Update

A packaging manufacturer has ceased to trade despite initial interest from almost 100 potential buyers.

Nottingham-based Surepak operated as one of the UK’s leading flexible packaging manufacturers specialising in high quality bags, pouches and film-on-the-reel products supplying both food and non-food sectors. Established over 30 years ago, the company carried out all its printing and manufacturing in house on a 45,000 square foot facility.

Dean Nelson and Nick Lee of PKF Smith Cooper were appointed joint administrators of the company on February 12 on application by sole director Stuart Yorston, just before a winding-up petition brought by creditor Flint Ink was due to be heard. The company had been facing issues due to the global energy crisis (which saw its electricity costs skyrocket by more than 425%), rent increases and the loss of two major contracts, which reduced its turnover by £1 million.

Surepak continued to trade for the short term as the joint administrators sought a buyer, ultimately receiving interest from 96 parties. Unfortunately, however, a sale was not completed, and Surepak ceased to trade in mid-May. The joint administrators stated that they were “disappointed with the ultimate outcome in not securing a sale of the business and assets as a going concern”.

Since that time, Polypouch UK has reportedly acquired various of the company’s intangible assets, including its goodwill, order book, customer base and website. BPI Asset Recovery, which also negotiated the sale of Surepak’s larger equipment, is assisting with the auction of remaining equipment.

The joint administrators’ proposals (filed in April) can be found HERE