Tring-based nutrition supplement business Melrob Grove has been rescued from administration saving 11 jobs.
FRP Advisory sold the business out of administration to Melrob Nutrition Ltd after Melrob Grove was forced to appoint administrators on 5 June.
The collapsed due to “an acute and unsustainable strain on its cash-flow”, FRP said, after HM Revenue & Customs ruled against it regarding its tax treatment for imported goods. HMRC’s decision mean Melrob Grove faced a £1.3m bill for back payment of import duty and VAT, forcing the company into administration.
FRP competed an immediate sale to newly formed Melrob Nutrition allowing it to continue trading under new ownership but from the same premises in Tring “without interruption to customers and suppliers”.
Glyn Mummery, joint administrator and partner at FRP Advisory, commented: “We are delighted to have secured a swift and healthy sale of this established Hertfordshire-based nutrition business, securing all 11 jobs and ensuring a vital continuity of management experience under a new ownership structure.
“An immediate sales of the business has delivered the best long term solution for the business ensuring it can continue to serve its long-standing and loyal customer base”.
Chemicals company Melrob Group bought Grove in 2013. Grove was established in 2007 supplying tablets and capsules to the nutritional supplement industry.