Food packing specialist Kapak Foods has been rescued from administration with the backing of a private equity firm, saving 150 jobs.
Seneca Partners backed newly incorporated Foodpack to acquire the trade and assets of the £17m-turnover company, which counts household names in the food and beverage sector, major retailers and contract manufacturers among its customers
Kapack had faced recent difficulties which put “unsustainable pressure” on cashflow, administrators at insolvency firm FRP Advisory said.
FRP partner Ben Woolrych and Russell Cash were appointed as joint administrators on 1 October and completed a sale of the on-going business to Foodpack soon after.
Foodpack has also been supported with a refinancing package from Secure Trust Bank and will continue to trade from Kapak’s 80,000 sq ft food production premises in St Helens, Merseyside.
Alistair Marsden and Anthony Hitchen, who both have experience in the food industry, have joined the business as senior directors and will sit on the Foodpack board.
“We’ve introduced a team in Alistair and Anthony who are respected throughout the food industry and who can drive the business forward, building on its undoubted strengths,” said Tim Murphy and Richard Manley, who worked on the deal for Seneca.
Marsden, whose previous roles include MD at two food production companies in the North West, added: “The business has a committed and skilled workforce, supported by a strong management team, which, when combined with state-of-the-art production facilities, creates a strong base from which to support existing customers and grow the business.”