THE FAMILY behind the old Adare printing and packaging group is set to rescue Buy & Sellmagazine from receivership.
Buy & Sellwas placed under the High Court's protection last June owing €18.3 million to National Irish Bank (NIB) and went into receivership last week after efforts to save the company failed within the 100-day protection period.
Receiver Tom Kavanagh of Kavanagh Fennell confirmed yesterday that a company backed by Nelson and Elgin Loane has bought the companies behind the classified magazine publisher.
The selling price was not revealed, but some reports indicated that the bank will receive about €3 million from the deal.
Nelson Loane was chief executive of printing and packaging plc, Adare, which was restructured 10 years ago and subsequently delisted from the stock exchange.
Elgin Loane now runs the Color Company, which employs 100 staff and provides print, reprographics, mail and shipping services to a variety of organisations in central London.
Buy & Sell’s new interim managing director, John Eager, is a former Adare executive.
The magazine was owned by Boundary Capital, the Dublin- and London-listed entity backed by financier Niall McFadden and his colleague, Declan Carroll. Both are directors of the group, along with its former executive chairman, Noel Boyle.
Boundary bought Buy & Sellfor €28 million in 2007. The debt it is carrying stems from the purchase price.
At the time it was placed under court protection in June, management said that it was fundamentally profitable, but its failure to restructure the NIB debt meant that it was effectively insolvent.
Its new owners plan to develop the existing classified business and to expand its website offering, where they see potential for growth.
Visitors to the website had increased to 572,000 when it was placed in examinership, from 237,000 last year.
" Buy & Sellhas a turnover of €7 million and is a fundamentally profitable business with a strong heritage," Mr Eager said yesterday.
"As a leading national brand, we believe Buy & Sellhas tremendous potential. We have ambitious expansion plans and we will be investing substantially in developing both the newspaper and the website."
The group employs 55 people and it is understood that this number will not change.
Boundary Capital has a range of assets across a number of sectors, including a stake in Dublin department store, Arnotts, but has seen their value fall over the last one to two years.
Last week US multinational Armarak agreed to buy another Boundary investment, facilities and property management group Veris, for €51 million. Shareholders will receive €14.8 million of this.
