Administrators have released more details about the events that led up to Waterline’s administration, with “a reduction in consumer spending” and “a lack of long-term funding” blamed for its unfortunate closure last week.
They also confirmed that there had been “no appetite for purchasing the business as a going concern”.
Following the administration, it has now been confirmed that a total of 105 redundancies took place at Waterline, with 15 staff members working to support the business’ winding down.
Joint administrators Alex Cadwallader and Dane O’Hara from Leonard Curtis explained that the company experienced “exceptional” growth in the lockdown boom between 2021 and 2022, after which the company began to decline.
This was blamed on a number of macro factors, such as the lifting of Covid restrictions and an increase in interest rates, as well as the wider cost-of-living crisis – all of which caused a reduction in consumer spending.
Following this, Waterline had to rely on funding support from its shareholders, which became “no longer viable” from 2025.
Waterline’s directors then made the decision to try and sell the business, but a buyer couldn’t be found. With a lack of long-term funding available, the decision was made to approach restructuring and turnaround specialists Leonard Curtis about the company’s financial position.
Leonard Curtis was formally instructed last month, and an accelerated mergers and acquisitions process was promptly begun. According to the firm, it did receive some interest in some assets of Waterline’s business, such as stock and intellectual property rights, however there was ultimately “no appetite for purchasing the business as a going concern”.
Following the joint administrators’ appointment last week on October 9, Leonard Curtis prepared a wind down plan as well as helped suppliers collect their stock under the company’s ‘Retention of Title’ obligations – a clause in a contract that says the seller still owns the goods until the buyer’s paid up in full.
“We are disappointed that a sale did not take place, despite reaching out to both industry and non-industry specific parties as part of our regulated process,” commented administrator Alex Cadwallader.
“A key driver for the board of Waterline was the safeguarding of jobs for employees with the aim of a going concern sale. However, despite their best efforts, the external factors pressures in the economy and the sector specifically meant a buyer could not be found. Unfortunately, 105 redundancies have taken place, with 15 staff members working to support the wind down of the business.”
In other news, following Waterline’s closure, sister kitchen business Crown Imperial has said it is still up and running with “business as usual”, and that it will still be able to supply products from its facility in Herne Bay, Kent.