More than 70 jobs saved at Peterborough-based electronic cigarette maker after cash crisis
A Peterborough based electronic cigarette maker has been given a new lease of life after running into financial difficulties.
The £4 million turnover I-Vapo Ltd, of Manorgrove Centre, Vicarage Farm Road, Boongate, had to appoint specialists to save the business and 73 jobs after hitting a cashflow crisis.
Administrator Carl Jackson, of restructuring specialists Quantuma, said the business had been sold as a going concern to a new entity set up by the I-Vapo directors.
I-Vapo, which was founded in 2013, had operated 21 shops, mostly in the East of England and the East Midlands selling e-cigarettes and e-liquid.
But the company also manufactured e-liquid and provided laboratory testing facilities for other manufacturers.
Mr Jackson said: “Financial issues arose due to heavy investment in the company’s technical division which was not ultimately supported by sufficient turnover to cover costs.
“But we have managed to sell the company’s business as a going concern, following a marketing period, to a new entity set up by the directors.”
Mr Jackson said the company had been rescued by Quantuma within 24 hours of his appointment on January 23.
He added: "We are delighted to have saved all 73 jobs and to have kept all 21 shops open by acting decisively with the directors of the new entity to secure the future of the company’s business.”