Following the appointment of administrators, kitchen distributor Swift Electrical Wholesalers has been saved by a pre-pack agreement.

Managing director Anthony Sant

Howard Smith and Tim Bateson from Interpath Advisory were appointed joint administrators to Swift Electrical Wholesalers, which is a distributor of kitchen appliances, taps and sinks.

Immediately following their appointment, the joint administrators sold the business and assets of Swift Electrical Wholesalers Limited to APS Distribution, formerly The Recycling Group Limited.

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The new business will be known as Swift and will be led by Anthony Sant, with owners Chris and Sharon Honer not involved with the business.

A total of 34 members of staff have transferred to the purchaser as part of the transaction.

All existing orders will be fulfilled and Swift will support retailers with any manufacturers’ warranties sold by the previous Swift business.

According to the administrator, the company had encountered “significant” challenges over the 12 months, including the loss of a main customer, which also resulted in the loss of a key supplier.

This not only impacted profitability but, in turn, led to increased cash flow pressure.

Interpath advistory reported Swift Electrical Wholesalers had also been making a loss, having faced difficulty recovering from the pandemic period with changes to its product portfolio.

The administrator stated its directors recently implemented a turnaround plan; however, the business had not returned to profitability.

As a result of these mounting pressures, the directors sought to undertake a review of their investment, refinance and sale options. When it became clear that a solvent solution could not be found, they decided to appoint administrators.

Managing director at Interpath Advisory and joint administrator Howard Smith said: “The continuing difficulties with product shortages seen during the pandemic, along with the loss of both a key customer and supplier, had a significant impact on the Company.

“We’re pleased to have been able to conclude this transaction, safeguarding the future of the business and saving 34 jobs. We wish the team all the very best for the future.”

Managing director of Swift Anthony Sant said:  “We understand that recent issues have caused uncertainty and concern for customers and suppliers. Our top priority is ensuring a smooth transition by fulfilling all existing orders and supporting retailers with manufacturer warranties from Swift. We thank everyone for their patience over the past couple of weeks.

 “By acquiring the business from the administrators, we have saved 34 jobs and secured the future of the staff and the company. We’ve now implemented a new management structure and secured investment to ensure stability and success moving forward. The previous owners, Chris and Sharon Honer, are no longer involved in the business.

“In the short term, customers can continue to expect Swift’s excellent customer service and its nationwide distribution service. We intend to increase the extensive range of products, including brands like Creda, to support long-term retail customers. 

 “We plan to leverage over 40 years of experience, sector knowledge and goodwill to create a proposition that goes beyond merely distributing leading kitchen brands.

“APS Distribution Limited offers a unique understanding of upcoming environmental regulations that will affect the electrical and kitchen retail sectors. 

“We believe this understanding will add value to the customer relationship by providing additional support to deal with electrical appliances at end of life.”

Creditors of Swift should contact the administrator Interpath Advisory.