BREAKING NEWS: Parry completes buyout to secure future

Parry will continue to operate from its Draycott headquarters.

Derby-based Parry Group said this morning that it has secured the future of the business after completing a buyout and restructuring of the company.

Catering Insight understands that insolvency practitioners Wilson Field were appointed last week to facilitate a pre-pack administration designed to ensure the continuity of the business and protect jobs.

The catering equipment manufacturer confirmed that a new business entity called ‘Parry Catering Equipment (Midlands) Ltd’ has completed the acquisition of Parry Group Ltd and will be led by MD, Mark Banton.

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The new business will continue to operate from the manufacturer’s Draycott site, with the company reporting it will be “providing the same high standard of service that has built its reputation over the past 70 years”.

The move means that no redundancies will be necessary and that employees pension pots are safe, as the previous company had a financially-crippling legacy final-salary pension scheme, the beneficiaries of which continue to be protected by the Pension Protection Fund.

Banton detailed: “I am really pleased that we have managed to secure the business’ future for our employees and loyal customer base. This is an exciting time and we are anticipating a bright future.”

The acquisition and new structure allows Parry to move forward without hindrance for its employees and customers.

Parry manufactures everything from fryers to fabrication and furniture, covering all catering and clinical requirements.

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One Comment;

  1. David Fereday said:

    Whilst you have painted a positive picture of Parry not going into receivership, and it is positive that the jobs of 70 staff have been saved, there is another side to the story that has not been portrayed.

    It is guessed that a major factor in Parry’s demise was that their prices were too keen. It is well known in the trade that they were super competitive and competing manufacturers were losing business due to probable below cost pricing.

    But having brought bad debt misery to their creditors and divested their pension scheme commitments to the Pension Protection Fund they will be continuing to trade. Will their products now be realistically priced? Competition is to be welcomed – it keeps you on your toes – but competition must be fair with as the cliche goes a ‘ level playing field’. You have lauded that creditors will now gain 31p in the pound instead of 13p – a victory!! The reality is that creditors are still going to lose 69p for each pound with bad debts well into five figures for some.

    Under the pre-pack arrangement Parry’s final salary pension scheme is being taken over by the Pension Protection Scheme which is funded by all companies with such schemes. So to add salt to the wounds the levies paid to the PPF by competing manufacturers, and these can be eye watering amounts, will be helping to fund the pensions of Parry’s employees.

    All this certainly leaves a bad taste and I wonder what Parry’s competitors feel about the issues raised. Maybe it will be a shrug of the shoulders. What would the late John Craddock, founder of Lincat, have observed? No doubt some pithy comments with the resolve to ‘keep taking the gravy’.

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