Prolog managers buy three sites out of admin
Tuesday, January 22, 2019
Three of Promotional Logistics' six sites have been sold back to former members of the management team.
The business, which trades as Prolog, was put into administration in November as a result of mounting operating losses and the loss of a major customer. It has six sites employing a total of 618 people.
Administrators Rebecca Dacre and Simon Chandler of Mazars accountancy firm confirmed that on Friday 18 January two sites in Sherwood Park, Nottinghamshire, and a third in Sudbury, Essex, had been sold to former Prolog managing director Neil Daniells and operations director Nick Hoare. The three sites employ around 330 jobs, which have been preserved.
Daniells and Hoare bought the business under the company name Prolog Fulfilment Ltd with the intention of addressing the e-fulfilment and returns market sectors.
In a statement, they said: “We are really excited by the opportunities ahead to build a company renowned for flexibility, with a can-do attitude for providing solutions that support our clients’ growth in this difficult marketplace, while being an employer of choice for our local workforce.”
Confirmation of the sale comes after a statement in December that Mazars had seen “over 70 expressions of interest” in buying the business. It is not currently clear what became of these potential buyers, or whether they remain interested in the other three Prolog sites, which are all located in Sherwood Park, near Annesley.
In a statement, Mazars confirmed that it would “seek to secure deals for the remainder of the business” while Daniells and Hoare will operate the remaining sites on behalf of the administrators for the time being.
Mazars had not responded to request for further comment at the time of publication.
In its most recent accounts, Prolog made an operating loss of £970,779 on sales of £34.8m.