By Elena Vardon
Robinson, a U.K. manufacturer specializing in plastic and paperboard packaging, has taken significant steps to reduce its debt. As part of its strategy, the company has chosen to sell a portion of its surplus property and utilize the return from its pension fund buy-out.
In a recent announcement, Robinson revealed that it has exchanged contracts for the sale of approximately 1.3 acres of its surplus property, known as Walton Works, located in Chesterfield. The property has been sold for an impressive sum of £1.5 million ($1.9 million) in cash, after accounting for costs amounting to £400,000. The net proceeds from this sale, expected to reach £1.1 million, will be used to reduce the company's debt.
The company further stated that it anticipates additional sales of surplus property over the next year. These proceeds will be channeled towards the development and expansion of Robinson's packaging business.
Pension Fund Buy-Out
Robinson has also reached an agreement with the trustees of its pension fund. They have successfully completed a buy-in of the company's defined pension scheme liabilities, resulting in a remaining surplus of £3.3 million. In collaboration, both parties have decided that the funds held in escrow will be utilized to reduce Robinson's debt.
Specifically, this will involve the cancellation of a £2.7 million loan and the release of £600,000 in cash. By taking these measures, Robinson will continue to significantly reduce its outstanding debt.
Transition in Leadership
As part of its ongoing corporate restructuring, Robinson announced that interim Chief Executive Officer Sara Halton, who assumed the position in June, will continue leading the company. At the same time, Robinson is actively seeking a permanent CEO to replace Helene Roberts, who will be leaving the organization on September 1st.
Robinson's commitment to reducing its debt, utilizing surplus resources, and seeking new leadership reflects the company's dedication to maintaining its financial stability and driving growth in its packaging business.
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