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BoS(I) seeks buyer for Easiwrap
18 October 2009 By Ian Kehoe
Bank of Scotland (Ireland) is close to selling Easiwrap, an Irish shrink-wrapping company, just days after seizing control of the business.
The bank appointed a receiver over Easiwrap last week, in an effort to secure around €4 million it had loaned to the company. The receiver, Tom Kavanagh of Kavanagh Fennell, is in advanced talks with a prospective buyer, believed to be a US-based businessman.
A deal is expected to be completed in the coming days.
It is expected that the business will be sold as a going concern, resulting in all 50 jobs being saved. Easiwrap makes high-strength stretch films for use in the packaging sector and has a number of international patents for its products. However, the company has experienced financial problems as a result of an ill-fated US investment.
The firm established a joint venture in Cleveland which employed around 100 people at its peak, but the investment failed and a rescue deal with a potential investor could not be agreed. Acting on foot of a charge over the company’s assets, Bank of Scotland (Ireland) appointed Kavanagh as receiver and manager of Easiwrap last week. It is continuing to trade.
The bank is owed between €3.5 million and €4 million, while other creditors are owed a further €1.5 million. Easiwrap made a pre-tax profit of €150,000 in 2008, but closed the year with retained losses of €884,000 after incurring a loss of €1.1 million the previous year.
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