The company failed to find a buyer for the whole business, but said today it had secured 15 sales and support jobs (from a previous total of 45 staff) by transferring part of its business and assets to a new company called Riegens UK.
The new firm was registered shortly before the original Riegens went into administration, and is owned by the same Danish parent company.
Riegens had hoped to keep all its staff, but Jason Baker, joint administrator and partner at FRP Advisory, said today: ‘Whilst interest was received from potential purchasers it was not possible to secure a buyer for the whole of Riegens Lighting to safeguard the whole of the company’s business. The sale to Riegens UK Limited does however preserve the jobs of some staff members and represents the best outcome for creditors to Riegens Lighting.’
Claus Jensen (pictured), chief executive of Riegens A/S, the Danish parent company, said: ‘It is important that Riegens retains a presence in the UK and this sale provides us with the opportunity to restructure and reinforce the business operations in the UK with a strong product programme.’
Poor performance in the UK business had been dragging down the performance of the company as a whole, which saw a 15 per cent sales decline last year and made a net loss of approximately £800,000, despite the Danish business maintaining its sales and growing its profits to around £1.2 million.
Riegens is the second major lighting company to go bust in the UK this year, after Abacus went into administration in May and had to be rescued by new investors.