Irwin Mitchell’s Restructuring & Insolvency team recently advised on a deal which has saved over 160 jobs at national healthy food and juice bar business Krush Global Limited, which trades under the well-known brand name, Crussh.
Ian Corfield and Philip Reynolds of FRP Advisory were appointed as Joint Administrators for Krush Global Limited on 10 January. On their appointment they immediately secured a pre-pack sale of the company to an investor group.
Kunal Gadhvi, restructuring & insolvency partner at Irwin Mitchell and consumer sector specialist, advised FRP throughout the transaction.
Commenting on the deal, Kunal Gadhvi, said: “Crussh has like many hospitality businesses been impacted by rising energy prices and the cost of living pressures on households causing an adverse impact on consumer confidence. This added to the lockdowns associated with the pandemic has created a ‘perfect storm’ of financial difficulties. This deal is a great outcome for the business, as well as the people that work there."
Established in 1998 and operating from 11 sites, as well as providing products to major retailers across the UK, the business had experienced tough trading conditions as a result of the covid lockdowns.
The sale of the business will allow the brand to continue with the vast majority of employees transferring to the new owners.
Under the terms of the sale, eight sites will transfer over to the new owners. The sites at Canary Wharf and Westway as well as the concession within the Everyone’s Active gym at Winchester will be closed and the administrators will continue their work to maximise the returns to creditors from the remaining assets of the business.
Ian Corfield from FRP added: “We are pleased to have secured a positive outcome for a long-established business that has sought to navigate through the range of challenges facing the hospitality and catering sector because of the pandemic. Crussh is a well-known and strong brand, and the deal ensures that trading will be unaffected with the continuation of supply to customers and the vast majority of sites and employees transferring across to the new owners. We wish the new management team every success as they take the business forward.
Irwin Mitchell's National Head of Restructuring & Insolvency Andrew Walker, recently wrote an article for the CBI about how firms can deal with financial pressures in 2023. The article is available here.
Food-to-go and juice bar group Crussh has been rescued after collapsing into administration, saving more than 160 jobs