Fife firm rescued
Havelock jobs saved in sale to turnaround specialist
Toby Underwood and Graham Frost of PwC were appointed joint administrators of the Kirkcaldy-based company today and have concluded a sale to Havelock International Limited.
It will save the jobs of about 320 staff, including more than 300 at its Fife head office.
Daily Business reported last week that the sale to a turnaround specialist was the most likely outcome.
Havelock was founded as a family joinery business in 1869, and has its heritage in the ESA McIntosh and Havelock Europa names.
Havelock Europa’s shares were suspended last week and today WH Ireland resigned as nominated adviser and broker to the company with immediate effect. The company said it has no intention of appointing a replacement within one month, as required under the AIM rules, and so will no longer be admitted.
Mark Addley, restructuring partner for PwC in Scotland, commented: “We are delighted to have secured a future for the business and employees of Havelock. 2017 was a very difficult trading year for the business and a combination of the associated losses and tightening credit in recent weeks rapidly led to a liquidity crunch.
“It has proved very difficult to secure a sale against such a backdrop so to have managed to complete a transaction and preserve the employment of over 300 staff in an area where there are very few substantial employers is particularly pleasing.”
Havelock chief executive Shaun Ormrod (pictured) added: “It has been a very difficult period for employees, customers and our supply chain.
“However, the PwC team have worked tirelessly to secure this sale which provides an opportunity for Rcapital to support the management team to implement its turnaround plan.
“With the ongoing support of our workforce, customers and suppliers I am looking forward to Havelock becoming a profitable, secure business with long term growth prospects.”