Some assets of Paragon Interiors have been sold to Elev8 interiors following an attempted sale of the whole business that fell through in March, said administrators.
Leonard Curtis Rescue & Recovery said ‘certain assets’ of Paragon Interiors were sold to an unconnected third party, Elev8 Interiors.
As the only qualifying charge holder, the sale is likely to release capital towards the write-downs experienced by BFS on the loss of the invoice finance lending to Paragon, but no details have been released on the value of the sale.
Leasing Life has contacted Elev8 and representatives of BFS for comment.
According to reports in local press, Paragon Interiors was due to be wound up today in the High Court just before the sale was announced.
The winding-up petition for Paragon was lodged by O’Neill and Brennan Construction over a £103,680 debt it claimed it was owed by Paragon, which was founded by Notts County boss Alan Hardy, said Nottinghamshire Live.
According to the paper, there was also an undisclosed supporting petitioner who it was said was owed £84,000. The winding-up petition was suspended by insolvency judge Sally Barber.
Paragon 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.
A potential sale of the whole business fell through mid-March.
Paragon had seen its 130-strong workforce made redundant in March, but the sale to Elev8 will open up the possibility that some could re-join the business under its new ownership in the future, said Leonard Curtis.
Leonard Curtis administrator Richard Pinder said: “We are pleased we could deliver a sale to Elev8, who is a highly regarded operator in the industry. Elev8 and the team are committed to restoring the reputation of Paragon, which might involve some recruitment of former Paragon staff members.”
Jon Singh, managing director at Elev8 said: “We are a multi-award winning company and have a clear vision now we have secured the purchase of Paragon. We have worked hard to establish ourselves in the marketplace, working with blue chip clients such as Coca Cola, Softbank and Heineken, to name a few. With a combined total of 53 years’ experience between the two companies we are confident and excited about the future.”