Jobs have been saved after an Essex vaping company was sold to Bolton firm AQL International Ltd.
Joint administrators from FRP Advisory were appointed to EOS Group on January 25 and on appointment, the business and its assets were sold to the Greater Manchester firm, which owns vaping brand AquaVape.
All 21 jobs at the vaping e-liquids manufacturer and online retailer and distributor of CBD-infused cosmetics have been safeguarded and transferred to the acquirer.
Mubaraq Patel, managing director of AquaVape, said: “Vapemate has long been recognised as one of the market leaders in British-made e-liquid and vaping products, which will enable us to broaden our product range significantly.
"Moreover, the group behind it has a strong e-commerce platform that will complement our existing sales platforms as we look to build out our presence in the UK market.”
Ben Stanyon and Ned Ailyan from specialist business advisory firm FRP led the deal, also supported by FRP’s corporate finance team in the East Midlands, who marketed the business prior to administration, led by director Harry Walker.
Established in 2013, EOS Group manufactured and marketed its e-liquid products on both a wholesale and direct-to-consumer basis.
As well as owning e-liquid brand Vapemate, it had diversified into selling CBD-infused cosmetic products and hemp-based teas stocked by retailers including Boots and Holland & Barrett.
The business had experienced a significant decline in its order book over the course of 2020, with the COVID-19 pandemic limiting sales of its products in retailers’ physical stores. This followed a period of significant financial investment in the development of its CBD-infused cosmetics range prior to the pandemic.
Mr Stanyon, director at FRP, said: “Despite having a well-established brand, like many associated with the retail sector, EOS Group had faced significant trading issues over the past 12 months.
"While those challenges ultimately compromised its ability to meet its financial obligations, we’re pleased to have secured a positive future for the business and all of its employees via the sale to AquaVape.”
