Family-owned steel construction firm, Robinson Structures Limited (‘RSL’), has entered into Administration after a challenging period, resulting in the majority of the assets of the business being sold by way of a pre-pack.
RSL is a third-generation company, with its humble beginnings dating back to the 1950s. Having created a strong reputation in the design and construction of steel frame buildings, they have successfully entered a variety of industrial and agricultural industries over the years.
Despite this, the Derby-based company experienced loss-making periods prior to March 2019 and from the second quarter of 2020, exacerbated by Covid-19. This significantly reduced orders and, therefore, operations. Notwithstanding the undertaking of a cost cutting exercise, the company returned into a loss-making position.
Dean Nelson, Head of PKF Smith Cooper’s Business Recovery and Insolvency division, became involved initially to review the financial position and options for the company, following the removal of RSL’s insured credit limits with its key suppliers. This advice resulted in PKF Smith Cooper being instructed to undertake an accelerated merger and acquisition process to try and identify a buyer for RSL.
Immediately on appointment as Administrator, some of the assets of the business were sold via a pre-pack that included the retention of the majority of the workforce
Dean Nelson commented: “I am pleased that we have managed to secure the sale of the majority of RSL’s assets, saving jobs in the process. It has been a very difficult time for the company and its management, compounded by various external factors and commodity price increases.”
A spokesperson for RSL stated: “It’s a sad day for the Robinson family, but we are thankful that jobs have been saved and the state-of-the-art production facility remains both intact and operational.”