Alpkit outdoor clothing firm with shop near Sheffield saved in administration deal
An outdoor equipment manufacturer with a shop near Sheffield has been placed in administration.
Alpkit said it had faced “incredible challenges” over the last three years.
In a letter to shareholders, chief executive David Hanney said the value of shares was “lost.”
The company had raised £4.18m from 4,244 investors in two crowdfunding campaigns.
But it had received backing from an investor as part of a “pre-pack” sale - arranged before the administration - and it would be continuing as normal, the letter explained.
The company is headquartered in Nottingham and has 10 shops, including in Hathersage in the Peak District near Sheffield.
In his letter, Mr Hanney blamed inflation, new trade barriers, rising interest rates and Covid recovery loan repayments.
The pre-pack deal meant all staff would transfer to the new company and customer orders would be fulfilled. He also said it was a clean start that cleared the firm’s “Recovery Loan legacy debt.”
Meanwhile every shareholder would be given shares in the new company.
He added: “This is not just a commitment from the team here; it demonstrates how well-aligned our new investor is with each and every one of you. You invested in us, and although that original business is lost, we want you with us with a stake in our future.”