Brian Green and Paul Flint of KPMG’s North West Restructuring team were appointed Joint Administrators of Colwyn Bay-based workplace consultancy business The BGM Group Ltd on 19 April 2013.
Following a period of marketing in the weeks prior to appointment, KPMG was able to secure a sale of the four key contracts and other associated assets on a pre-pack basis to Manchester-based facilities management business, Europa.
The sale has successfully secured the ongoing employment of 29 of the 55 staff members across the company’s North Wales and London offices. In addition to this, a small number of employees have been retained to assist the Administrators on a short term basis.
The BGM Group Ltd provided strategic workplace solutions to a number of significant corporate clients from two leasehold offices in London and North Wales. The primary services offered by the company were office space management and move management.
Paul Flint, Restructuring Associate Partner at KPMG, said: “After suffering from significant short-term cash flow pressures, the business was unable to meet its tax obligations. As a result, The BGM Group Ltd was placed into administration. However, we are pleased that, through a successful sale process, we were able to save 29 jobs.”
Greig Brown, Chief Executive for Europa, said “This acquisition further develops our capabilities and product offering in the workspace arena, an area where we already excel as part of our FM offering. I am delighted to welcome our new colleagues from BGM and look forward to working with them as we continue to grow and improve our city based operation.”
KPMG is on site to provide support and further information to the affected employees in claiming redundancy payments from the Redundancy Payments Office.
The Manchester office of DLA Piper provided legal advice to Europa on the transaction.
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KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
Europa is a privately owned, leading property and infrastructure support services business, operating right across the UK. It employs over 4,000 staff and has a turnover approaching £160m. Europa delivers Building and Facilities Management services across four markets – corporate, public, retail and infrastructure providing a bespoke or a total package as required. Europa also provides an added value specialist service in workspace solutions including moves, interior design and furniture. For further information visit www.europa-services.co.uk
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.