13.07.2009

Oktopus sold to management

Oktopus UK Ltd, the Bromsgrove, UK, based crane and glass suction equipment business, which went into administration in June, has been purchased by Richard Gould, the previous owner and director, through a new company Oktopus Plant Hire.
Click here to see original report
The administrator says that Gould has provided substantial personal guarantees to at least some creditors – most likely the preferred or secured creditors, i.e. the banks and leasing companies and is “seeking to mitigate his liability by continuing the business”.

The administrator says that it soon became clear that he “was unable to continue to trade the business, and that Gould had been in negotiation with several interested parties, before the administrator was appointed, to sell the business and had appointed agents to market it. However when contacted by the administrator no interest was shown”.

Gould has paid £30,000 for the business and assets, payable in three monthly instalments of £8,000, with a final payment of £6,000. The administrator will retain title to the assets until the final payment is received.

Interestingly Gould established three Oktopus companies at the start of June, prior to the administration. Oktopus Plant Hire Ltd, which has now acquired the Oktopus business, Oktopus Contracts Ltd and Oktopus Training Ltd.

Vertikal Comment

As the administrator says this was not one of the new fangled pre-pack administrations, but came close enough for him to treat it in the same way when it came to notifying creditors etc...

It is a surprise that no one could be found who was interested in buying the assets of the business for £30,000? One would have thought that a competitor would considered this a worthwhile investment for a bit of consolidation?

At this stage it is not known what debts Oktopus UK left behind, nor if the Goulds intend repaying or partially repaying monies owed to their non secured creditors. A comment from the administrator suggests that they might, although few business owners that go through this process give much, if any consideration to the creditors who lost out, no matter how well their ‘new business’ does going forward.

Could this case be an exception? We have not yet heard from Gould, time will tell, but if you are one of those creditors I would not count on it, but lets hope that you will be pleasantly surprised.