Enact Fund II, the UK special situations fund managed by Endless LLP, has sold Bartoline Limited, the Beverley-based manufacturer of decorating sundries for the home improvement industry, to Paramount Retail Group Holdings Limited.
The management team of Bartoline has been working with advisors in recent weeks to review options for the company, in view of the very significant trading challenges that it continues to face.
Yesterday (3 December) Jonny Marston and Joanna Bull of professional services firm Alvarez & Marsal Europe LLP were appointed as Joint Administrators to the company.
Immediately following the appointment, Bartoline has been sold to Paramount via a pre-packaged deal process. Paramount is acquiring the business and assets of Bartoline, and all staff will move under TUPE to the new owner, preserving the jobs of 89 employees.
Bartoline was originally an investment by Enact Fund II in March 2021 to support its growth ambitions.
While sales volumes for Bartoline in the immediate post-Covid period declined as expected, it has not been possible to fully reflect higher labour and raw material costs in more recent pricing, which has inevitably impacted cash flow.
Jonny Marston, Managing Director, Alvarez & Marsal, said: “Bartoline had been heavily impacted by challenging market conditions, which has been experienced across several sectors in the wake of the pandemic.
“We are delighted to have completed a sale to Paramount which will see the business continue to operate from its base in Beverley, safeguarding all jobs.”
Chris Cormack, Partner of Bartoline’s majority shareholder, Enact Fund II, said: “We have been very supportive of the business, investing significant capital and time since acquiring Bartoline in 2021. We worked closely with management to recruit additional skills and experience, as well as backing an expansion of production capacity.
“However, a more normalised post-Covid revenue profile has been unable to absorb higher costs beyond the company’s control. We wish the management and staff of Bartoline well as they enter a new phase of recovery under a new owner.”
