25 May 2020 | 12.40 pm
Spicers Rescued After Paragon Deal
EY liquidators sell the office supplies business to Paragon Group
25 May 2020 | 12.40 pm
Troubled office supplies company Spicers has been sold by liquidators to Paragon Group for an undisclosed sum, which is hoped will safeguard jobs for some of the 44 people employed by the Citywest-based business.
In early May, the High Court appointed Luke Charleton (pictured) and Colin Farquharson from EY as joint liquidators for Spicers Ireland, which had been doing business in Ireland for 30 years. Spicers is part of a UK-based group that went into administration earlier this year.
Spicers sold offices supplies and equipment in Ireland, and had been performing well. Filed accounts for 2018 show that Spicers Ireland had annual turnover of c.€17m and booked a net profit of €592,000. The company had year-end net worth in 2018 of almost €15m.
Spicers’ Irish operation was dependent on its UK parent for key services and was heavily compromised when the group went into administration and those services were withdrawn. The company also suffered a sizeable revenue drop as a result of the Covid-19 pandemic.
EY said that the sale of Spicers Ireland includes the trade and stock and will see Paragon Group take assignment of the lease of the Spicers Ireland depot at Citywest. As well as safeguarding a number of jobs, the transaction will also secure a future for the Spicers brand in Ireland, EY added.
Paragon Group operates three divisions, focusing respectively on customer communications, ID-related services and print/design. The business has operations in more than 20 countries, primarily in Europe, and is headquartered in London.
EY liquidator Luke Charleton said that it was particularly pleasing to complete the sale of Spicers Ireland during a challenging time for businesses. “Paragon Group will provide Spicers Ireland with a solid financial footing on which the business can be taken forward.
“The liquidators will now work towards realising the remaining assets of the company, which have not been included in the transaction, for the benefit of the creditors of Spicers Ireland.”
Paragon Group also has a presence in Ireland and has made several acquisitions in recent years. In 2018, the group acquired AmaTech, the Irish-based tech company specialising in the development and production of RFID technology.