A Grimsby company, which supplies dried fish to Nigeria, has been sold out of administration – securing the future of 25 jobs.
The business and assets of JHS Fish Ltd, based in Trondiem Way, Stallingborough, have been sold to JHS Export Ltd.
Julie Palmer, regional managing partner at business recovery specialists Begbies Traynor’s Salisbury office, managed the sale with Joint Administrator Sally Richards. The administrators were appointed on February 16.
Julie Palmer said the company had begun to hit financial problems following a ‘sharp but prolonged recession’ in Nigeria, and currency restrictions were put in place by the Nigerian government, which adversely affected cashflow.
She said: “The Nigerian market had been in a sharp recession and there were signs of stability and after the company went through some restructuring, the trade with Nigeria looked promising.
“However, the Nigerian market went into a deeper and longer recession than originally anticipated.
“Things started to improve in late 2017 but the Central Bank of Nigeria continued to enforce currency restrictions leading to difficulties in getting funds out of the country. Despite the best efforts to increase the export price and reduce costs, the company ran into financial difficulties.
“The management team made every effort to turn things around, but in January they had reached a stage where they were unable to continue.
“They did the right thing in turning for advice, and we were quickly able to establish that a sale out of administration was the best course of action, meaning the company can now face the future with a greater degree of confidence.
“We were delighted to also be able to ensure the future jobs of the employees.”