Capital Cooling in second administration in three years
7th August 2020
UK: Edinburgh-based commercial refrigeration company Capital Cooling has been acquired in a pre-pack deal after entering administration for the second time in less than three years.
Beheren Ltd, a subsidiary company of Capital Cooling’s existing owners RCapital, has acquired the assets of the business for £4m in a pre-pack deal with the administrators.
The company entered administration for the second time on July 30, the day before releasing details of a restructuring of the business which will see it vacate its current Edinburgh base.
Established in 1996, Capital Cooling first went into administration in December 2017 with debts of over £6m. The cabinet sales part of the business was acquired by private investment company RCapital in a pre-pack deal for £300,000. That deal with administrator KPMG saw the loss of around 50 employees and the closure of its service division.
According to Catering Insight, the new Capital Cooling Refrigeration Ltd business has continued to struggle financially, securing a £3.5m funding facility from independent SME funder, Bibby Financial Services (BFS) in April. Despite recording a gross profit of £2m in the last financial year, and furloughing staff during the coronavirus pandemic, Capital Cooling was still suffering losses.
James Pike and Kerry Cadet of Quantuma were appointed joint administrators of Capital Cooling Refrigeration Ltd on July 30. A day later, Capital Cooling announced the subsequent restructuring of its business would mean moving its hq to Livingston and its warehouse and logistical capabilities to Northamptonshire.
Beheren Ltd lists Phil Emmerson and Christopher Campbell of RCapital, along with current Capital Cooling MD Steve Steadman as its directors.
Related stories:
Capital Cooling leaves Edinburgh – 31 July 2020
UK: Edinburgh-based commercial refrigeration company Capital Cooling is to restructure its business, moving its hq to Livingston and its warehouse and logistical capabilities to Northamptonshire. Read more…
Capital Cooling wins £3.5m funding – 17 April 2020
UK: Commercial refrigeration business, Capital Cooling Refrigeration, has been provided with a £3.5m funding facility to support the company’s internal investment and growth. Read more…
Capital Cooling business sold for £300k – 24 December 2017
Capital Cooling will continue as a cabinet sales company under the name Capital Cooling Refrigeration Ltd, having been bought by new owners for £300,000. Read more…
Capital Cooling closes service division – 22 December 2017
UK: Edinburgh-based Capital Cooling is to close its service division in a pre-pack administration deal. Read more…
