Manchester agency bought by management through pre-pack deal
Cube has been sold to its management through a pre-packaged administration deal, overseen by Baker Tilly.
The deal, which the management says will allow the 17 employees of the agency to keep their jobs, was completed on 17 February.
The agency had faced difficulties from several factors, including increased overheads incurred from moving to new premises on Princess Street and its working capital requirements changing as a result of winning a number of larger clients.
Cube's managing director said: “It has been frustrating for us over the last 12 months. Our growth strategy, subsequent move of headquarters to central Manchester and a restriction in funding forced us to take this route. We have managed to secure a more suitable working capital solution following the deal and re aligned our business strategy moving forward”.
Ben Woolrych of Baker Tilly added: “Their position was symptomatic of the predicament many businesses find themselves in when their client base diversifies and their working capital requirements are affected as a result.
“Fortunately there was a management team in place prepared to seek advice at the right time and, on this occasion, the sale of the business back to management was the best outcome for creditors and has ensured continuity for its clients and staff throughout the process.”