Malibu suncream maker collapses into administration

Popular sun lotion brand avoids collapse after rescue deal

The business has been operating for 27 years and sells its sun lotion and tanning oils through retailers including Boots, Home Bargains, Morrisons, Poundstretcher, Savers and The Range. 

However, a fire at its warehouse on 11 August destroyed large amounts of stock, raw materials and specialist machinery, severely disrupting its ability to manufacture and trade.

Malibu Health Products formally entered administration on 15 October, with FTS Recovery Limited's Marco Piacquadio and Rachel Ennis appointed to oversee the process.

The company's operations have since been transferred to a new business run by the same director. 

According to FTS Recovery, the sale of the firm's goodwill was completed on the day the administrators took over.

"On the date of the administrators' appointment, a sale of the goodwill of the business was transferred to a new business operated by the director," an FTS Recovery spokesperson said in a statement.

All nine head office employees will move to the new company, keeping their existing contracts, wages and legal protections. 

The roughly 30 manufacturing workers are also unaffected, as they are employed by a separate company within the same group and were not involved in the administration.