Audio visual services provider CTBO Ltd has been acquired out of administration by its founder after it suffered financial difficulties.
Ten jobs have been secured in the move which saw the Sunderland-based firm sold to CCC Technologies Limited where Anthony Booth is also a director. CTBO was formed in 2015 and provided audio-visual services to resellers across the UK and Europe, including engineers that can work as part of a virtual team on behalf of other companies.
The firm went on to expand into providing network infrastructure and electrical services including installation of cabling and wireless access points in buildings and has worked with clients across the country. Administrators SFP were appointed to the business earlier this month after what was said to be several years of trading difficulties.
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SFP said that in 2019 CTBO began to experience poor cash flow and had taken a number of measures to reduce costs. The financial difficulties were exacerbated by the pandemic and put the firm at risk of insolvency.
Directors entered the business into a company voluntary arrangement (CVA) in March 2020 - a measure that allows the payment of creditors over a designated period. But administrators say the company continued to struggle and accrued post CVA debts.
The most recent accounts for the business, to the end of April 2021, show it owed £536,582 to creditors and had £422,775 owed to it, and in cash. Directors sought the advice of insolvency specialists before the business was valued and marketed before being sold to CCC Technologies Limited earlier this month.
David Kemp, joint administrator at SFP, said: "The sale was a positive outcome helping to protect the business and save jobs. At a time where many businesses across various sectors are facing a variety of pressures, it is perhaps more important than ever for directors to be on the front foot and to seek professional advice when concerned. Whilst it can be daunting to do so, it will in most cases make a meaningful and positive difference to the business and the eventual outcomes."
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