RMJM sold for £11m
Troubled outfit RMJM Architecture has been sold to an investment company
Duthus Investments has purchased RMJM Architecture, the company which bought RMJM, RMJM Scotland and RMJM London out of receivership in October last year
Practice director Declan Thompson told shareholders of the deal in an e-mail sent late last week.
In it he said: ‘Having received and accepted an unconditional cash offer of £11 million for the shares in RMJM Architecture Limited (which in turn owns all of the other significant trading operations of the RMJM Group worldwide) we have today successfully completed a transaction to sell the group’s trading subsidiaries to Duthus Investments Limited (which will shortly change its name to RMJM Group Investments Limited).’
He added: ‘Additionally, the offer will result in debt burden of over £12 million being removed from the business as it moves forward in its new structure which will facilitate the restoration and future development of the RMJM brand. The elimination of this very substantial debt level will massively assist the business, enhance its prospects and secure the employment of the talented staff.’
Explaining the deal, Thompson said although restructuring had put the group ‘on a more secure financial footing’ the company’s board ‘recognised that the business was still left with a considerable debt burden (in excess of £24 million) which was too onerous to be supported by its current level of activity.’
The sale was backed by the Morrison family which owns the company and has three quarters of its voting rights, Thompson explained.