Tom Paton From Irwin Mitchell Comments On Deal

Coventry-based cleaning products manufacturer Ecotech has been sold to Essex firm Harrison Wiping in a pre-pack administration process, with all 27 employees retaining their jobs.

Robert Dymond and Joanne Hammond of Begbies Traynor in Sheffield were appointed as joint administrators of the business on 10 February after being instructed to advise the company on securing a sale in January.

Established over 25 years ago, Ecotech manufactures and supplies cleaning products for a range of sectors, from healthcare and the NHS to industrial and contract cleaning firms. Its Torrington Avenue production site in Coventry manufactures more than 200 million wipes a year and the firm has 100 product lines.

Joint administrator Robert Dymond said: “Despite its great reputation and diverse customer base, like many businesses Ecotech found itself struggling financially last year as a result of escalating rent costs.

“The directors sought our advice and we were able to negotiate a sale to Harrisons, a South East business in the same industry, in a pre-pack process that saved the jobs of the entire Ecotech team.”

Ecotech director Jason Lippitt said: “Business owners shouldn’t be frightened of seeking advice from insolvency practitioners. This is a perfect example how businesses can be saved when everyone pulls together. Begbies and the Irwin Michell team worked extremely hard and I am seriously impressed with the result”

Tom Paton, Curtis Blackham and Rachel Piper from Irwin Mitchell’s Restructuring and Insolvency team in Sheffield, together with Leeds based partner, Doug Robertson, advised Begbies Traynor.

Tom Paton at Irwin Mitchell said: “This is a fantastic outcome for Ecotech and its employees and we wish the new owners well in the future. The collaboration between our team and Begbies Traynor was crucial in ensuring a smooth transition and securing the jobs of all employees.

“No business is immune to the impact of rising costs, but the deal highlights the importance of timely intervention in safeguarding businesses and livelihoods.”

Commenting on the announcement, Harrisons managing director, Stephen Harrison, said: “This is a pivotal moment for Harrisons, marking a key milestone in our growth strategy, and a significant development in our 134-year history. It’s clear that Ecotech’s range complements our existing portfolio of products, so I’m excited by what’s next. I really believe that, together, we can set new standards in wiping.”