C J Pryor Plant and Contracts Limited were sold to Hargreaves (UK) Services in March after briefly being placed into administration.The move saved 60 jobs at the Harlow based firm, however the deal left scores of suppliers out of pocket with many creditors upset about the way they’ve been treated.
C J Pryor filed an initial intention to appoint administrators on January 19 in order to secure the business’ current ongoing work and assets after a cash flow crisis.They then worked with turnaround specialist FRP Advisory to seek a buyer with more than 40 expressions of interest.
FRP Advisory said “While continuing to trade the business as a going concern, management with the assistance of FRP Advisory entered into detailed negotiations over competing offers for the ongoing business and trade, before securing an extended period of exclusivity with Hargreaves, which offered the best solution for all concerned, including ensuring a key contract for the business would novate under a change of ownership, together with providing the best prospect for novating other contracts.”
FRP Advisory was appointed as joint administrators over CJ Pryor and therefore completed the sale to Hargreaves (UK) Services. One creditor said “We have been left in the dark throughout this whole process.C J Pryor has been going about business as usual while we were all owed money.We were constantly assured last year that everything was fine at the firm so we supported them and this is our reward.”
Tom Rolfe, Co-Owner of The Channel Partnership comments “Sadly, insolvencies are commonplace in modern business, as businesses overreach, or experience cash flow crises. It is worth any business who offers credit terms to clients, to consider a credit insurance policy. Not only does it protect and pay out in the event that a creditor goes bust, it also helps to reduce risk in the first place, by providing insights and risk advice of the stability of a client and the appropriate credit you should extend to them. In this case, it is advice in hindsight, but businesses concerned about the potential risks posed by their creditors, should definitely consider credit insurance.”It is really important for creditors to ensure that they are protected if a company they are working with unfortunately has to go into administration. That’s why we offer a range of Credit Insurance policies from Comprehensive to Export and Specific. We start with a conversation, to understand your business and your approach to credit, ending with a solution that’s suitable, even if we advise you not to use Credit Insurance. To find out more about what Credit Insurance Policy would be suitable for you, please contact us on 01275 817320 or click here.