Babease, the UK organic baby-food firm, and Brecon Foods, which manufactures its products, have been bought out of administration by entities controlled by local investment firm Amitis Partners.
FRP Advisory, which was appointed administrator to the firms on Thursday (21 November), said in a statement they had been called in “following a period of unsustainable working capital pressures for the businesses”.
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It said that following the Amitis deal both businesses will continue to trade.
“The joint administrators facilitated a pre-pack sale of the businesses to entities controlled by Amitis Partners. The sale ensured continuity of trading for both businesses and the joint administrators wish the new owners every success in taking the businesses forward,” it said.
London-based Babease was established in 2016 by chef Tom Redwood, It uses organic vegetables to create food for young children and babies from the Brecon Foods factory in south Wales. It acquired Brecon Foods in 2016.
Last summer Babease secured GBP1m (US$1.3m at the prevailing exchange rate) in funding from Bibby Financial Services (BFS).
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By GlobalDataIt said it planned to use the money to fund the growth of the business – including expanding its range and production capability – following an “extensive period of investment” in product development.
Babease’s products are sold by major retailers, including UK big four supermarket Tesco, and online via Amazon and Ocado.
It is unclear whether founder Redwood is still involved in the business. just-food has asked new owner Amitis Partners for clarification.
A pre-pack is a deal for the sale of an insolvent company’s business and assets which is agreed in principle before the company goes into a formal insolvency process, usually administration.
