The joint administrators of Clugston Group Limited today said they had successfully agreed a sale of the share capital of Clugston Distribution Services Limited.
The administrators had been called in to Clugston Group last month after losses placed mounting pressure on the business.
Clugston Distribution Services Limited, which continued to trade as normal in recent weeks, has been acquired by AJWG Limited.
The administrators said: "The transaction, which follows a marketing process by KPMG, ensures that Clugston Distribution Services continues to trade as a standalone entity, preserves value in the supply chain and secures the jobs of 153 employees."
James Clark, the joint administrator of Clugston Group Limited, said: “This sale represents a positive outcome for Clugston Distribution, its stakeholders, and for the local area. A solvent sale ensures ongoing trade for the business, its supply chain, and, furthermore, helps secure jobs for the incumbent workforce.
"The deal is testament to the considerable efforts of the senior management team at Clugston Distribution and my colleagues who have worked tirelessly to secure the future of the business.
“Of course, there is still much more work to do. We continue to explore all options as we look for buyers for the contracts and divisions in administration.”
Clugston Group Limited, Clugston Construction Limited and Clugston Services Limited remain in administration after the appointment of administrators in December 2019.
Clugston Estates Limited is unaffected by the administration and continues to trade under the control of its directors.