Vital Restructures But It S Business As Usual

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Vital restructures but itís business as usual
6th November 2018

By Sandra Pearce

Vital Pet Products is restructuring following ‘a root and branch review’ of its business. Director Sunny Sharma has given his personal reassurance that there will be no redundancies or site closures as a direct result of the change, and he says there should be no disruption to supply for customers.

Vital Pet Products and L. Batley Pet Products merged in 2006, but the two continued to operate as individual units within Vital. The Subura Group, owned by Sunny, then bought Vital Pet Products from the Steuart family in March last year.

Sunny said Vital Pet Products and L. Batley would now finally be consolidated and the new business would be called the Vital Pet Group, with its registered office in Sheffield.

Vital has contacted its suppliers to let them know it was transitioning purchases initially from Vital Pet Products to L. Batley, but with a view to bringing the consolidated business under the Vital Pet Group banner.

To complete the restructure, the Vital Pet Products part of the business will cease to trade from purchasing or sales functions and the company will go forwards as Vital Pet Group.

Director Sunny Sharma has been reassuring stakeholders that this is not an indication that the Vital Pet Group is insolvent – the company has already benefited from £1.45m of investment in the last 18 months.

He said: “The Vital Pet Group will continue to benefit from significant and ongoing investment and will be stronger as a result of this change.”

CLEAN BREAK


Sunny said there was no alternative to making this change.

“In recent months, information was unearthed that was not disclosed to the directors when the company was purchased,” he said. “There were undisclosed liabilities that extended beyond the core wholesale business and agreements…

“Having exhausted all other options, bringing forward the formation of the new company was the only solution.”

He added: “It’s such a pity that we have had to yet again cope with another historical hurdle when the last six months have seen an increase in trading performance as a result of the changes we have made. The restructure allows the new Vital Pet Group to move forwards with a clean break and without potentially damaging liabilities in the background.”

He said Vital Pet Group intended to proceed full steam ahead with future plans and added that the core company was ‘in great shape and well positioned for growth’.