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Liquidators rescue jobs and orders at Hampshire water sports brand
A sale has been secured for liquidated water equipment company H2O Sports - saving employees from redundancy and ensuring customer orders have been fulfilled.
H2O Sports, which has been trading in Poole for 20 years, entered liquidation in March 2024.
The firm had enjoyed an initial uptick in sales during the pandemic - with a rising demand for equipment created by the general public’s new-found enthusiasm for exercise activity with more free time outside of work.
However, supply chain issues began to cause issues for the business - forcing directors to over-order in an attempt to minimise disruption to customers and maximise stock. Additional issues arose with post Brexit regulations increasing import costs. Overall demand reduced in the coming months and the wholesale price of equipment fell - leading to the stock losing value.
With debt rising, the directors took the decision to close the company - working hard to ensure customer orders were supplied where possible and stock was returned to suppliers under their retention of title clauses.
A sale of the business and assets was achieved to maximise the return to creditors, as well as preserving jobs at the firm.
Joint Administrator Mike Fortune stated: “This is a slightly different business case in that the impact of pandemic regulations actually resulted in improved sales for the business initially - before supply chain issues created challenges around fulfilling orders.
“Customer behaviour also changed during this period due to supply chain delays - with people shopping around different stores to obtain the equipment they wanted as quickly as possible.
“As the pandemic regulations were lifted, ordinary routines resumed, and interest in water sports waned for some people who found they suddenly had less time to pursue it.
“The cost of living crisis and the reduction in disposable income also resulted in a big drop off in sales across the industry and the business model was no longer viable. The silver lining is that we have managed to secure a sale and most importantly of all save jobs.”
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