Begbies Traynor, the administrator appointed to dispose of the Kettle Interiors UK Ltd business (see related), has stated that, "due to the various challenges and creditor pressures Kettle faced in the lead-up to the date of insolvency", it executed an open marketing sale process through its selling agents, who advertised the disposal of the goodwill and IP rights of Kettle in the public domain.
Joint administrators Gary Shankland and Ken Pattullo confirmed that the marketing sale process "generated significant interest within the furniture sector locally and abroad", with many interested parties contacting its selling agents during the diligence and sales window – and that a number of offers were received, the highest of these being from Kettle Home Ltd, a newco set up by former directors of the company.
The statement reads: "At the closing date of the marketing process, at 5pm yesterday [28th March], our selling agents advised that one offer was materially higher than the other offers received for the goodwill and IPR of the business. This offer was from an associated company called Kettle Home Ltd. As a result, our agents gave this bid the preferred bidder status, subject to diligence and funding, and recommended its acceptance.
"Following consultation and recommendations from our agent to accept the preferred bid, the administrators began a consultation process with the company’s lender, which holds security over the assets subject to the offer, for their subsequent review and approval of the preferred bid received.
"The administrators write to confirm that following an open market sales campaign, the offer from the preferred bidder, Kettle Home Ltd, was today [29th March] accepted for the acquisition of the goodwill of the Kettle branding and associated IPR, subject to contract, contrary to previous articles that may have been released.
"Subsequent sale deadlines have also been put in place by our agents, as the administrators seek to dispose of the vehicles, chattel assets and remaining stock in an open marketing tender sale. Interested parties should contact the administrators’ agents by email at: [email protected]."
Kettle Home had previously informed customers – on 27th March – that the management buyback had already been completed. When asked to clarify the timeline, Begbies Traynor replied: "The administrators’ statement confirms the position with Kettle Interiors."
