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Begbies Traynor has announced that all 110 jobs at Sarah Raven Kitchen and Garden have been saved following a pre-pack administration deal that saw the gardening retailer acquired by a new company backed by its founder and a key supplier.
Joint administrators Robert Ferne and David Rubin of Begbies Traynor Group were appointed on 14 July after the company entered administration due to financial difficulties. A management buyout was completed the same day, enabling the business to continue trading through its website, SarahRaven.com.
Begbies Traynor said it had approached more than 100 potential buyers before accepting the offer from Sarah Raven and a major supplier, which it determined provided the best return for creditors and safeguarded jobs.
A substantial portion of the company’s assets has been transferred to the successor business, which will honour all customer orders and vouchers. Staff have also been moved to the new entity.
Creditors will receive compensation from the sale of certain assets and a continuing royalty interest in the new firm. Legal advice was provided by Osborne Clarke.
The new owners plan to inject capital into the business and adopt a simpler operating model focused on core product categories and third-party fulfilment.
Rubin, senior partner at Begbies Traynor, said: “The company had experienced a number of years of growth and had also invested in expansion of the business by acquiring its own nursery, integrating technology and creating jobs for people in the area.
“Unfortunately, inflationary cost rises, tax changes on certain kinds of plants and other pressures on the business had weighed down on those foundations and pushed it into financial difficulty.
Founder Sarah Raven said: “Building this brand has been my life’s work … despite all of our hard work, this is a necessary restructure of SarahRaven.com to guarantee the survival of the business.
“With the support of my family, and a major supplier, my ambition is to continue with everything we love about the best of gardening for our hundreds of thousands of loyal customers, for our dedicated and talented team, and for our network of suppliers, large and small across the UK and beyond.”
