Nationwide insolvency practitioner, SFP, has successfully completed the sale of the business and assets of TPM Contracting Limited, a West-Northamptonshire-based injected polyurethane (PU) insulation firm, protecting the jobs of all 24 employees.
Formed in 2006, the company provided PU insulation within the UK and Ireland to the food, fishing and industrial refrigeration industry, with clients including Tesco, Pukka and John Smith’s. Despite a promising start to 2019 and a significant forward order book, COVID-19 had a catastrophic impact on the business.
In providing an essential service, the business stayed open throughout the pandemic. Unfortunately, many of its workforce were obliged to return to their own countries, which in turn caused production delays and financial loss. A lack of HGV drivers and supply chain issues compounded an already challenging situation, and with mounting fuel prices and energy costs, the business entered into Company Voluntary Arrangement (CVA). This was followed by the appointment of David Kemp and Richard Hunt of SFP as joint administrators on 14th July 2022.
After valuing the business, marketing the opportunity and considering all interest from various parties, a sale was achieved on 19th July 2022 to TPM Insulation Ltd, another entity owned by the directors of TPM Contracting Limited. As a result of the sale all employees have retained their jobs and have been transferred under TUPE.
David Kemp says he is pleased that the sale provides the best outcome for the business, its employees and creditors: “The Directors have decades of experience in this industry, and went to great lengths to save the business, taking pay cuts and putting their own money into the business, but were not able to overcome the perfect storm that 2020 and 2021 delivered.
“Its continued operation out of West Northamptonshire is excellent news for the region, and demonstrates the value of taking appropriate action early, and not burying your head in the sand.”