A Leeds-based group of claims companies has beeb bought out of administration in pre-packed sale deal.
Care Home Claims and MS2U, who help clients who had been mis-sold financial products and services including PPI or had been over-charged on care home fees, were sold for an undisclosed sum, to Acquire Inc. in transactions which saw 32 employees of an associated company transfer to the purchaser.
The group is based in New York House, New York Street, in Leeds city centre
Joint administrators Kelly Burton and Lisa Hogg from Sheffield-based Wilson Field were called in by the directors after it began to face increasing financial difficulties.
Kelly Burton, director and insolvency practitioner at Wilson Field, said: “These companies ran into difficulty following the over calculation of work in progress on a contract, coupled with an accumulation of HMRC arrears.
“The directors contacted us for advice and have worked closely with us to achieve this result.”
Group Managing Director Joseph Battle said: “Problems were encountered as a result of an unprofitable contract and accrued HMRC arrears which lead to a severe cash flow shortage.
“We took professional advice and worked with the administrators to enable the business to continue as a going concern and preserve jobs of existing staff.
“Despite this being a very difficult time, the outcome means the business can continue.
“With the same management team we can assure clients the same high level of service in the future.”
A spokesperson said the pre-packaged sales have been expedient in realising the maximum value for the businesses, ensuring a better return to creditors had been agreed upon.
Ms Burton also said: “We are pleased that the restructuring of these companies has resulted in the businesses continuing to trade via the successor business.”