Background
Established in 1809, Denby manufactures high quality stoneware from its Derbyshire factory, where it also welcomes 250,000 visitors a year to the Denby Visitor Centre. Having been acquired in a traditional private equity transaction several years prior to Hilco’s involvement, Denby became overleveraged with a £72 million historic debt burden, a substantially underfunded final salary pension scheme and a high fixed cost base.
BDO and Clearwater had been seeking a purchaser for the business since July 2008 and, with the lender group unwilling to advance further funds, were carrying out contingency planning for an administration.