Bust office supplies firm offered up to potential suitors

Buyer sought for Spicers brand after it ceased trading last month

Office supplier Spicers is being marketed to potential buyers after ceasing trading last month.

The firm was founded in 1796 but has struggled over recent years as online businesses continue to take chunks of the market, according to an administrator's report filed with Companies House by EY.

EY started working with Spicers in February and had been trying to find a buyer before it went into administration. However the four offers it received were deemed inadequate.

Hilco Streambank has now been charged with selling the firm's brand and intellectual property, according to an email sent to potential suitors, including IT channel businesses, seen by CRN.

The email, which links to an online listing, describes the process as an "auction" and says the deadline for bids is set at 2pm on 25 June.

Spicer's managed print brand ZenOffice is unaffected and still trading, EY said.

Spicers sold products, including IT supplies, to resellers across the UK.

Sales for the year ending 31 December 2018 were up 9.5 per cent to £164m, but operating losses widened to £6.2m.

The administrator's report, dated 21 May, stated that "the COVID-19 enforced lockdown had a significant effect on the business, with a reduction in orders from businesses and dealers, and an interrupted supply chain".

It added that this resulted in a 50 per cent decline in orders and sales.

Spicers owes at least £23.8m to dozens of trade creditors, including a handful in the IT channel.

A cluster of creditors are owed high six-figure sums.

The amount owed to many of these creditors is listed in the report as "unknown", meaning the total figure will be greater.

Secured creditor Lloyds is owed £17.2m. Spicers is however owed £22.8m from trade debtors.

It its listing Hilco said: "With the Spicers brand holding a market-leading position, the buyer can capitalise on a well-known and highly-regarded reputable brand which can be taken in a new direction or acquired as an expansion opportunity."

Spicers Ireland was rescued from liquidation last month when it was acquired by Paragon Group.