An initial sale of Paragon Interiors Group has fallen through, resulting in the redundancy of the company’s employees yesterday, according to administrators Leonard Curtis Business Rescue & Recovery.
Leonard Curtis said it was still in discussion with other interested parties and continuing to pursue a potential sale and to secure a more positive outcome.
The company had been in receipt of a £3m invoice finance facility with Bibby Financial Services since February 2018 but entered administration in February 2019 in the face of increasingly difficult trading conditions.
Leasing Life understands the workforce amounted to 130 employees.
The BBC has reported that Paragon Interiors Group is owned by Alan Hardy, who is also the owner of League Two division football club Notts County, which is also currently looking for a buyer.
Last week owner Alan Hardy told the Press Association that Paragon Interiors had been sold for “diddly squat”, however, he later retracted those comments and passed a statement to local paper Nottinghamshire Live:
“Further to media reports earlier today (March 7), I am delighted to confirm that there has been significant interest and I understand a substantial offer made, to buy Paragon Interiors.
“Naturally, due to the nature of the situation I am not privy to any details with regards the valuation and cannot offer further speculation.
“However, what I do know and can say with pride is that the interested party is a very credible and hugely professional organisation and has brilliant plans for the business.
“I am confident that they are exactly the right people to make this wonderful business great once again.”
BBC Radio Nottinghamshire has reported that Paragon had supplied capital to buy and fund Hardy’s takeover of Notts County in January 2017, but Hardy has said the football club would not be affected by the administration.
The BBC also reported that HMRC has issued a winding-up petition to Notts County over an unpaid tax bill, understood to be £200,000, with a court date set for 10 April, which Notts County is vigorously defending.
Leonard Curtis confirmed that following its appointment as joint administrators of Paragon Interiors Group it was working closely with Notts County Football Club ‘to achieve a positive outcome for all concerned’.
The administrators also said it was supportive of Hardy’s attempts to find a purchaser for the football club, which was ongoing prior to their appointment.