Currency Market Force Premium Appliance Brands Into Administration

Losses caused through currency fluctuations have forced Premium Appliance Brands Limited (PABL), the Warrington-based appliance company, into administration. Despite PABL building in a 5% leeway to cater for currency changes, joint owner Guy Weaver says: “There’s not a person who could have predicted a 33% drop – and so quickly.”

But now founders Weaver and Peter Brazier have bought up the assets and stock – remortgaging their homes – and started up a new company that will carry on the business. “It”s back to basics, again,” says Weaver.

PABL was founded in 2002, going on to notch up business awards and a ranking of 34 in the Sunday Times Fast Track 100 League, with a £25m turnover in 2007.

With a workforce of 36 at its peak, it sourced own-brand appliances products from around the world and sold them to major UK retailers, including Argos and B&Q. PABL also sold brands including Homark, Cusina, White-Westinghouse and Cookers among others.

In 2008 the business made heavy losses as it felt the effects of the rapid fall in the value of the pound against the Dollar and the Euro. Weaver says that the losses (he declined to say how much but industry rumours suggest around the £3.5 million mark) were initially supported by PABL’s bankers, but as the UK economy continued its decline, the bank pulled the plug and put the company into administration on May 12.

Now Weaver and Brazier have started again, having gained funding to buy stock, designs, brands, goodwill and trading relationships from the administrators, Price Waterhouse Coopers in Manchester. Weaver told ek&bb that although the new business ““ Appliance 365 ““ would be seen as a “phoenix company” by some, he insisted that while some suppliers were affected, the biggest loser was the bank, with Brazier and himself losing “significant” six figure sums.

Guy Weaver and Peter Brazier will remain joint owners of the new business.

“We have tried to be as honourable as possible, and our major customers and suppliers, virtually without exception, have been incredibly supportive of our new venture and encouraged us to trade,” says Weaver. “This is clearly a very difficult situation which developed over a very short space of time. Nevertheless, our objective is to effect a smooth transition to the new business and minimise inconvenience to our customers.”

Trading from the same premises, all 12 of PAB’s remaining staff ““ the firm had been making redundancies throughout 2008 ““ are working for the new company. Weaver says new projects developed at PAB, including cookers and an “eco-friendly waste recycling product” are well advanced.

It is unknown at present what the position is with any warranties on products sold under the PABL banner and whether or not they will be honoured.