Ice cream firm bought out of administration
The Warwick-based firm has been bought by a group of investors, led by the firm’s former operations manager Alexandra Beer.
Joe Delucci’s fell into administration after the company’s original efforts to agree a Company Voluntary Arrangement in November failed when it did not gain the support of a sufficient number of major creditors.
Craig Povey and Richard Toone, partners at insolvency and restructuring firm CVR Global, were appointed administrators on January 8.
‘Saved a significant number of jobs’
Commenting on the purchase, Povey said: “Following a period of intense marketing, we are delighted to have found a buyer for the business, which has saved a significant number of jobs.”
He blamed the company’s downturn in profits on the weakening of the pound against the euro in the aftermath of the UK’s vote to leave the EU in June 2016.
“This resulted in costs from overseas suppliers increasing significantly, with the business being unable to pass said increases on to its customer base,” said Povey.
“This also sat against the backdrop of a challenging economic climate on the UK high street, with individuals taking a more ‘cautious’ approach to discretionary spending in the period following the Brexit vote.”
Brexit and changes on the high street caused fundamental changes to the business, added Alexandra Beer, which could have been addressed and a restructuring and turnaround plan supported by creditors.
‘Rejected the proposal’
“However, a small number of trade and other creditors disappointingly rejected the proposal, forcing the company through an administration,” Beer added.
“That said, we are excited for the business and it is now on the right footing to grow and deliver what we always believed it was capable of.”
Joe Delucci’s Gelato supplies ice cream to various supermarkets across the UK and has a number of retail parlours in shopping malls.
Meanwhile, in September, salad supplier Southern Salads entered administration and “all but a handful” of its 260 workers have lost their jobs, after the value of sterling plummeted following the Brexit vote.
