Dragons’ Den star and North East entrepreneur Sara Davies is stepping in to rescue the business she launched as a university student after its directors placed it into administration.
Crafter’s Companion was first launched by Ms Davies when she was at York University, through the launch of one envelope-making product. It has since grown to become one of the biggest businesses of its kind, selling crafting tools and supplies across the UK, Europe and the US through its website and retail stores in Newton Aycliffe, Chesterfield and Evesham.
However, Ms Davies – a regular on crafting shows on TV channels as well as BBC shows including Morning Live – has revealed how the Newton Aycliffe firm has struggled in recent times, to the point where an investment organisation stepped in to help the business last year, ploughing several million pounds into the company.
The move by Growth Partners led to a new management team being appointed to drive forward an aggressive growth strategy – but they didn’t want Ms Davies or her CEO husband Simon, who co-founded the company with her, to lead the company. Ms Davies remained a minority shareholder and its figurehead, but the move took away any control she had in its day-to-day operations.
Ms Davies revealed Crafter’s Companion was being put into administration by its current directors after the company reached a point where it didn’t have sufficient working capital to continue to operate. It is being placed into administration tomorrow – triggering an expected pre-pack deal by the celebrity entrepreneur to rescue what she describes as “my third child”.
Recognising the strength of the brand, and the talent and loyalty of the firm’s employees, Ms Davies told how she decided to purchase the business from the administrator and organise a financial restructuring that will give Crafter’s Companion the working capital it needs.
As a result of the restructuring, the large majority of the 100-plus jobs will be saved and the company will continue to trade as a going concern. Ms Davies will also return as its CEO. The restructuring, financial details of which are being kept confidential, will allow Crafter’s Companion to continue to trade normally.
Ms Davies said: “Crafter’s Companion, as everyone knows, means a huge amount to me. Having founded it while I was still at university, to have this chance to bring the company back on track is an opportunity I grabbed with both hands.
“There’s no secret that the company was struggling post-pandemic, and its owners tried to pursue an expansion strategy at a time of real economic uncertainty, which was unfortunately unsuccessful – as everyone knows, it’s an unprecedentedly difficult time for many retail and consumer businesses. However, looking to the future, we have a new financial structure in place which means we have managed to save the large majority of jobs in the company – and in particular in the North East of England, and ensure that we continue trade as a going concern.
“This means a lot to me. To be going back into the business alongside the fantastic team at Crafter’s Companion is an opportunity I couldn’t pass up. Consumer interest in crafting has never been stronger, and with customers of every age recognising the well-being and mental health benefits of creating beautiful things, I am looking forward to help drive the strategy of the company again.”
The new series of Dragons’ Den returns to BBC1 on Thursday.
View news Source: https://www.chroniclelive.co.uk/news/north-east-news/sara-davies-dragons-den-administration-30721981
