Lancashire-based health and household goods company Statestrong has been rescued from administration by Croatian consumer products group Wachem, The Grocer can reveal.
The business was bought from administrator FRP Advisory in a deal that secured jobs for all 78 staff across the company’s sites in Lancashire and Cheshire. However, at the time of going to press, reports were emerging that some redundancies could be made after all as Wachem reviewed the business. The terms of the deal were not disclosed.
The acquisition will provide a platform to support Wachem’s UK and Continental growth. Wachem makes cosmetics and toiletries, including shampoos, hair styling products and lightening creams.
FRP said the sale ensured security of supply for Statestrong’s customer base of more than 100 live accounts, including Poundland and Euro Car Parts.
Statestrong was restructured in December 2014 and underwent rapid expansion under a new ownership structure, but this exhausted the company’s capital facilities, FRP said. “After efforts to secure further investment failed to materialise, Statestrong had no alternative other than to seek the protection of administration on 7 October,” the firm added. “This allowed the joint administrators to continue to trade the business and serve its array of customers whilst engaging with interested parties and concluding in the sale of the business and assets to Wachem.”
Swirl Products, trading as fmcg, also entered administration in October after being taken over by Statestrong a month earlier. FRP said that fmcg had performed well in recent times but it suffered an “acute shortfall” in cashflow following the sale. Fmcg was separately bought by consumer products group 151 Products last month.
No comments yet