A Newcastle catering company has been bought out of administration by a West Midlands investment vehicle, safeguarding 38 jobs.
Byker catering equipment suppliers Bob Crosby Agencies Limited, which traded as Crosbys, was first established in 1990 and had grown to be the largest independent supplier of catering equipment and chemicals in the North East with a turnover of £8m.
Last week, however, Unitech Group Investment Fund stepped in to snap up the trade and assets of the Business from administrators RSM in an undisclosed deal which has saved 38 jobs.
Steve Ross and Matt Higgins of RSM Restructuring Advisory LLP were appointed joint administrators of Crosbys on April 5 and following their appointment the Business was successfully sold to Unitech, which owns a number of Businesses in sectors including manufacturing and property as well as several catering companies.
The newly-formed company, which began trading on April 6, will be named Crosbys Catering Supplies Ltd.
The project side of the Business will be incorporated into ScoMac Catering Equipment Ltd, which is based in Livingston with offices in Cambridge and Leeds, headed by operations director Steve Shepherd.
It is understood that debts owed by Bob Crosby Agencies won’t transfer to the new Business.
Crosbys will be supported by Unitech’s group finance director Mark Street and the full Crosby team, including Roger and Ben Crosby, who are the sons of founder Bob Crosby.
Mr Street, said: “Crosbys has an exciting future with the ongoing financial support of The Unitech Group Investment Fund.
“They will continue to offer superb service delivering light equipment, chemicals, disposables, crockery and cooking equipment with an increased offering across the North East – maintaining national coverage with Local service.”
Matt Higgins of RSM Restructuring Advisory LLP, said: “The sale to Unitech is an excellent result which not only saves 38 Local jobs but ensures continuity of service for its loyal customers and safeguards a well-known, established North East Business. We wish them every success under the stewardship of Unitech.”
Bob Crosby first started the Business from his three china shops in Tynemouth, Whitley Bay and Whickham, which he was running when sons Ben and Roger were just starting school.
It evolved into an £8m turnover Business supplying crockery, cutlery, specialist catering equipment, paper and janitorial supplies to more than 2000 customers in the North. Three years ago it acquired regional rivals and fellow family-run catering firm John Dodds of Gateshead.
The two firms brokered the deal following the John Dodds’ family move into commercial and rental holiday property.
Source : Chroniclelive