Stockport textiles firm bought out of administration

Stockport based textiles firm, Creative Apparel, has been sold after falling into administration on March 3rd, ensuring the future of 14 jobs.

The business, which prints and embroiders designs for clothing and workwear, appointed administrators in response to financial challenges at the firm. Creative Apparel had experienced trading losses due to the coronavirus pandemic, which inhibited manufacturing capacity and customer demand. The construction of a new high-tech manufacturing facility for the firm had also seen cashflow problems and increasing costs and delays, adding further stress to the textiles firm’s finances.

Following the appointment of administrators, the business and assets were immediately sold to a new company, Apparel Services Ltd, with Creative Apparel’s Cheadle premises sold to Oakfield RD Limited, owned by the same third party. 14 staff at the firm will see their employment transferred to the new business. In a statement, joint administrators Interpath Advisory shared that this was seen as the best option for creditors after reviewing funding options available.

Rick Harrison, managing director at Interpath Advisory, said:

“We’re pleased to have been able to conclude these transactions which safeguard the future of this innovative Stockport business, as well as preserving a number of jobs. We wish the new owner, management team and all employees the very best for the future.”

Interpath Advisory was advised by Tim Taylor and Barry Davies at Addleshaw Goddard.