A private equity firm has acquired school uniform firm Trutex from its administrators PwC.
Leeds-based private equity house Endless, which specialises in turnarounds, paid an undisclosed sum for the business and assets of the Lancashire firm.
Trutex went into administration in February. Its last accounts showed an £182,000 pre-tax loss on sales of £16.3 million.
Endless partner Warwick Ley told the local press that the company also struggles with fluctuating levels of debt because it needs to carry high levels of stock at the start of the school year.
"Fundamentally it is a good business but its debt levels were way out of kilter to its operating profit levels,” he said. “It was hamstrung by its debt being too large but with fresh investment we believe there is a really good opportunity."