Logistics firm Amco Services (International) was sold in a pre-pack deal that cost its management team £143,000, according to new documents.
The company called in the administrators in April after the impact of the Covid-19 pandemic disrupted a turnaround plan launched earlier in the year in response to mounting cash and creditor pressure.
The deal saved around 160 jobs and the firm’s depots in Redditch, Worcester and Telford were kept in operation.
In a report to creditors, administrator Grant Thornton said Amco’s customer base was largely concentrated in the automotive sector and that it had faced a challenging period, which led to losses totalling £1m.
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It said Covid-19 “materially altered both trading and uncertainty and the extent of the company’s liabilities and its ability to deal with them".
As the situation worsened, Grant Thornton began to market the business for sale, but there were no offers from external trade buyers.
However, CBW Resources, a company whose directors are also directors of Amco, proposed a deal worth £142,996, which was finally accepted.
All employees were transferred by TUPE to CBW and Grant Thornton said that unsecured creditors, with estimated claims of £3.1m, are anticipated to receive a dividend, “although the quantum and timing of the distribution is uncertain,” it added.