A job-safeguarding sale has been agreed for a North West-based urban leisure wear brand which was co-founded by a Geordie Shore star and has had link ups with prominent sports people.
Gym and loungewear brand 11 Degrees Ltd, which is based in Kendal in Cumbria, has been sold to Greystone House Brands Ltd and MCR Collective Ltd.
The company was originally set up in 2014 by Gary “Gaz” Beadle of Geordie Shore fame and Andrew Hayton.
Beadle was a director and a shareholder at the time of RSM’s appointment, but the administrators said he was not involved in the day-to-day management of the company
The brand and intellectual property of 11 Degrees Ltd have been purchased by Manchester-based Greystone House Brands Ltd. All 21 employees and the stock will transfer to MCR Collective Ltd, which will mean “minimal disruption to trade and no jobs losses”.
Joint adminstrators Chris Ratten and Lindsey Cooper, of RSM UK Restructuring Advisory LLP, agreed the sale.
Chris Ratten, restructuring partner at RSM, said: “Securing this sale ensures a smooth transition of ownership to Greystone House Brands with minimal disruption to staff and customers of 11 Degrees Ltd.
“Whilst the business continued to support revenue of £10m, the pandemic, additional costs created by Brexit, and supply chain difficulties have created an exceptionally tough trading environment. With a new owner of 11 Degrees it means the popular fashion brand will go from strength to strength.”
Andrew Hayton said: “The new venture with MCR Collective provides not only additional working capital and security of the supply chain but an exciting next step on the 11 Degrees journey, as new brands are added to what we hope will become one of the UK’s premier brand houses.”
The joint administrators were advised by TLT solicitors and SIA group.
Greystone House Brands and MCR collective were advised by Brabners solicitors.
Source: Insider Media