A buyer is being sought to rescue the personal care and consumer goods business behind the Escenti, Head Funk, Nuage, Salon Chic and Active Handwash brands.
Swirl Products Ltd, which trades as fmcg, supplies its products to supermarkets, pharmacies, discounters and wholesalers throughout the UK and in 32 countries around the world.
Restructuring firm FRP Advisory has been appointed as administrator with partners Russell Cash and Ben Woolrych continuing to trade the business while they search for a buyer. All nine employees at the Oldham base in the North West have been retained.
FRP said fmcg had performed well but suffered an “acute shortfall” in cashflow following the sale of its shares to Statestrong Products at the start of September.
“The cash pressures left fmcg with no viable alternative other than to seek the protection of administration to allow the business to continue to trade,” FRP added.
The administration ring-fences the business’ on-going trading from Statestrong after the consumer cleansing products manufacturer appointed administrators from FRP on 7 October after a rapid expansion resulted in it exhausting working capital facilities.
Statestrong customers span Europe and include Poundland and Euro Car Parts, with products in several categories, including health and beauty, household, automotive and industrial. It is the second time in 12 months the business, which employs 80 staff, has entered administration.
FRP said it hoped to secure a sale of fmcg in the next few weeks. Joint administrator Russell Cash added: “There is already interest in fmcg; this comes as no surprise as the business commands a leading presence in branded personal and household care products for the discounters, supermarkets and pharmacy chains.
“The administration is a necessary process to allow fmcg to continue to trade, ring-fenced from the problems created by Statestrong. The interest we have received means we are hopeful of achieving a sale of the business in the short term.”