Textiles wholesaler SG UK International has been sold via a pre-pack deal after entering administration for the second time.
Steve Kenny and Richard Cole, both of KBL Advisory Ltd, were appointed as joint administrators of SG UK International Limited on 30 January 2026.
Established in December 2022, the Blackburn-based business is a wholesaler and distributor of household goods, predominantly linens and home textiles.
Upon incorporation, the company acquired the assets of then collapsed Sadaqat Global (under common ownership), which went into administration during December 2022. (See related).
In the first year of trading the company appeared to be profitable, after higher than expected turnover, however, following this there was a sustained decline in sales which led to a reduction in overall turnover.
This coincided with the company continuing to incur higher overhead costs. This pattern persisted to 2025, resulting in a strain on cashflow.
By December 2025, it had become apparent that the company required funding above the level available to it by its lender and neither the company nor its investors were in a position to advance the necessary funding to meet rental payments on the commercial premises or to support the business to continue to trade.
A review of the company’s cash-flow revealed that there would be insufficient working capital available to allow the company to continue to trade in the medium term in order for a purchaser to be found.
There were no requests made to potential funders. Given the company’s financial position, it was determined that the business was unable to demonstrate affordability to any prospective lender and had limited assets available to offer as security.
Upon entering administration, the company assets were sold to Pacific Textiles Limited (a newco formed on 8 January 2026 under common ownership) in a pre-pack deal for a total consideration of £130,000, with £50,000 received to date and the remaining £80,000 to be collected by way of deferred consideration (secured by personal guarantee).
The Purchaser was one of two parties to produce formal offers. One offer submitted by GHC Global Limited, which comprised a total cash consideration of £100,000 for the assets of the business only. The second offer from Pacific Textiles Limited comprised a total consideration of £130,000 for the business and assets as a whole.
As for creditors, preferential HMRC claims totalled £67,000, which are expected to be repaid from realised assets valuing £126,000. Unsecured creditors are owed a combined sum of £619,000, while a floating charge debt owed to SSH Finance amounted to £1.6m. It is expected that creditors will suffer a shortfall of £2.2m.
