Over 30 jobs have been saved at a stricken Hull transport firm after it was bought out of administration.
RM Group Hull, which has been trading for two years, ran into difficulty after an accident involving a vehicle owned by a connected company.
The business, based in Lime Street in Hull, subsequently collapsed into administration in late July, putting 35 jobs at risk.
However, after RM Group was put up for sale with the hope of finding a buyer, a deal was struck which saves all the jobs at the freight business.
Insolvency specialist Begbies Traynor acted as administrators in the deal.
It said in a statement: “Based in Kingston upon Hull, the road freight transport company had been trading for two years.
“Unfortunately, it suffered from bad debts and an accident involving a vehicle owned by a connected company but which it operated, resulting in significant cost and disruption. This led to cash flow pressures and a CVA was subsequently proposed, but was rejected by the creditors.
“A period of marketing was undertaken in an attempt to bring about the best possible outcome for creditors by preserving the value of the company’s goodwill as well as enabling trade to continue and preserving jobs.
“An offer to purchase the company’s goodwill and records was received, bringing about a higher return to the administration through goodwill, the debtor ledger and saving all 35 jobs.”
Andrew Mackenzie and Julian Pitts of Begbies Traynor were appointed as administrators to RM Group Hull Limited on July 23.
The pair oversaw RM Group being put on the market, and its subsequent sale to an as-yet unnamed buyer.
Goodwill is a term used when a business looking to acquire another business is willing to pay a higher price than the firm’s market value.
It could be due to the business on the market having a strong reputation, a strong customer base, or a talented workforce.
The deal means the previous owners of RM Group received a better offer for the firm than expected, at the same time allowing the business to keep trading and maintain staff.
RM Group specialises in the transportation of static caravans, mobile homes and holiday lodges, as well as modular buildings across the UK and Europe.
