UK beauty company plunges into administration as all jobs lost — 'the only option'

UK beauty company plunges into administration as all jobs lost — 'the only option' It was founded in 1997, but now all staff have been made redundant 'immediately' A UK cosmetic and skincare company has fallen into administration after almost 30 years in business. The family-owned business has sadly ceased trading, and all staff have lost their jobs. Aromantic, a supplier of natural and organic beauty products, trades through its own website as well as online platforms including Amazon and Shopify. It sold oils, fragrances and other ingredients to customers to create their own creams, lotions, balms, toiletries and spa products. Its customer base included home crafters, salon owners and beauty therapists. Aromantic had a £1.1million turnover and was founded in 1997 by Kolbjorn Borseth, who later handed over the reins to his son Benjamin. The business, based in the Greshop Industrial Estate in Forres, Scotland, has now ceased trading and has been placed in administration. Christopher Horner and Kevin Pinkerton, of restructuring and insolvency practice Business Rescue Expert, have been appointed joint administrators of Scotland-based Aromantic Limited. The joint administrators have secured the sale of the company’s assets to an unrelated party, including its stock, websites, and online platforms. All 11 employees were made redundant immediately before the administration. Kevin Pinkerton said Aromantic had traded well during the pandemic, but sales declined afterwards. He added: “The fall in revenue, combined with increasing raw material, shipping and employment costs, contributed to the business becoming insolvent. “Aromantic took out short-term loans to keep afloat, but the repayment requirements had a material effect on its cashflow. Over the summer, the company sought our assistance to explore ways to keep the business going. “Working with the director, we tried every avenue to enable Aromantic to continue trading or sell it as a going concern, but regrettably, a formal insolvency process was the only option.” Aromantic has been contacted for comment. Why do companies enter administration? Businesses can enter administration when they are unable to settle their debts, a situation known as insolvency. Payments to creditors or anyone owed money by the company are suspended throughout this process. Plans to restructure the firm are developed, and an administrator from a qualified accountancy practice takes control. They oversee operations until a new owner can be identified. Creditors must receive as much repayment as possible, which is generally achieved through asset sales. Administration is a lengthy procedure and can take several months. A company can be put into liquidation and shut down if there is no way to make more cash.