Rapid growth for GNG Group
28 March 2018
Wakefield-based GNG Group, a manufacturer of foam products to the sports, healthcare and bedding sectors, has reached an agreement with its creditors to end its company voluntary arrangement (CVA), following a substantial investment from its majority shareholder.
Phil Whittell, the company's majority shareholder and managing director, has injected funds into the business to allow a final payment to creditors to be made, some two and a half years ahead of the originally-proposed end date.
GNG, which is behind the Memory Foam Warehouse brand, entered into a CVA in 2015, following substantial losses in its online retail arm.
Since then, the group has focused on its sports and healthcare divisions, both of which are said to be growing rapidly.
In a statement, the group said: "With the substantial improvement in the group's balance sheet and cash position now that CVA payments have ceased, the group is well placed to develop both main divisions, together with the launch of a new mattress brand later this year alongside its Komfi ranges.
"Discussions will now be held with credit insurers to request a restoration of insurance limits now the group is again financially stable and profitable."
The CVA will formally conclude with the payment of a final dividend to creditors by the group's CVA supervisors.