Red Letter Days appointed Andrew Pepper and Alastair Beveridge from corporate investigation firm Kroll as administrators last Monday (1 August), after ongoing difficulties with suppliers.
As first reported on www.thelawyer.com last Tuesday (2 August), Red Letter Days, which sells vouchers for gifts such as hot air balloon rides and spa weekends, was sold last week to Peter Jones and Theo Paphitis, a former chairman of Millwall football club.
Jones and Elnaugh are both judges on BBC2’s Dragon’s Den, a reality TV show for would-be entrepreneurs.
One source close to the deal said administration was used as a protective measure to allow the administrators to conclude the sale negotiations.
DLA Piper won the mandate to act for Pepper and Beveridge because the firm also advised the duo on the administration of department store Allders in February.
As first reported in The Lawyer (7 February), DLA was instructed by the administrators on the Allders administration as the firm had advised Kroll on the Ciro Citterio administration in 2003.
The DLA Piper team was led by insolvency partner Simon Neilson-Clark, while Davenport Lyons partner Alon Domb advised Jones and Paphitis.