Jobs saved as ice cream business sold out of administration

A Midlands ice cream business has been bought out of administration in a deal that saves the jobs of 38 workers.

Joe Delucci’s Gelato, a retailer and wholesaler based in Warwick, has been purchased by a group of investors headed by the firm’s former operations manager, Alexandra Beer.

The firm supplies ice cream to various supermarkets, and also has a number of retail parlours in shopping malls in the UK.

Craig Povey and Richard Toone, partners at insolvency and restructuring firm CVR Global, were appointed administrators on January 8 after the company’s original efforts to agree a Company Voluntary Administration in November failed when it did not gain the support of a sufficient number of major creditors.

Mr Povey said: “Following a period of intense marketing, we are delighted to have found a buyer for the business, which has saved a significant number of jobs.

“Joe Delucci’s Gelato has proven it has all of the makings of a profitable business with the relationships it has with big retailers and presence in some of the UK’s largest shopping malls.”

He said the cracks began to form following the Brexit vote and the subsequent downturn in profitability due to a weaker sterling weakening against the euro.

“This resulted in costs from overseas suppliers increasing significantly, with the business being unable to pass said increases onto its customer base. This also sat against the backdrop of a challenging economic climate on the UK High Street with individuals taking a more ‘cautious’ approach to discretionary spending,” added Mr Povey.

The company also struggled following changes to local business rates, which resulted in units previously excluded now becoming liable for charges, which were backdated for up to three years.

Ms Beer said: “Brexit and changes on the high street caused fundamental changes in the business, which it was hoped would be addressed by a restructuring and turnaround plan which was supported by a significant number of creditors, including HMRC the largest creditor and the company’s bankers.

“However, a small number of trade and other creditors disappointedly rejected the proposal, forcing the company through an administration.

“That said, we are excited for the business and it is now on the right footing to grow and deliver what we always believed it was capable of.”