Posted on 14 January 2014
Sohal Foods Ltd, a Derby based wholesaler and catering supplier, has been saved after being bought out of Administration by Hyperama Plc resulting in all 30 jobs being preserved.
Hyperama, who currently have 3 cash and carries in the Midlands, was the successful bidder buying the business and assets from the Administrator Dean Nelson of Smith Cooper on 7 January 2014.
Despite rapid growth over the past 30 years, the business encountered cash flow difficulties and as such a reduction in margin. Dean Nelson was instructed to market the distressed company as a going concern, during which time a number of potential buyers expressed interest with two formal offers received.
Dean commented: “For over 30 years, Sohal Foods have provided high quality food to restaurants, take-away, caterers and licensed traders in the East Midlands. The excellence of their delivered service has been integral to their success and I am pleased that this will continue and go from strength to strength under the new ownership.”
Marcus Singh of Hyperama says: “the management team at Hyperama are delighted with this acquisition and the opportunities that it presents for the overall group. We feel that we can grow the business by introducing our better buying power and range into Sohal Foods whilst incorporating their outstanding customer service and delivered offering into Hyperama. Rather than cutting costs, we are keeping on all the staff and will be investing heavily into the business infrastructure to give it the necessary impetus.”
Dean added: “This is a fantastic outcome, not only for the entire workforce who have kept their jobs but also for Derby as a whole. The Administration process has ensured that the business has been saved and has emerged in a more robust position to continue servicing its customers’ needs.”
The Administrator was assisted in the sale by Rachel McCahill-Brown of Nelsons solicitors.