The Terry Healy Group, which also had a working relationship with Hearts, said “unsustainable cash flow problems” related to accrued liabilities during the Covid-19 pandemic allied to soaring labor costs and raw materials, shrinking margins, delays in contracts, and slow payments were behind the decision to cease operations.
A total of 51 people have been made redundant despite considerable efforts to rectify the situation, with provisional liquidation seen as the only option according to Callum Carmichael, partner at FRP Advisory Trading, who said: “Unfortunately the company has not We were able to overcome some very serious issues and closure was the only option.We will now focus on asset completions including the sale of the heating maintenance contract database.
The Easter Road team agreed a three-year deal with the Dalkeith-based company in July 2021, with the company named as a ‘Present Sponsor’ and their logo worn on the sleeve of the game kit.
The Tynecastle Park side have agreed a two-year deal, with the logo appearing on the players’ shorts.
A message posted on the company’s website reads: “I inform you that Callum Angus Carmichael and Chad Griffin of FRP Advisory Trading Limited have been appointed as Joint Provisional Liquidators of Terry Healy Group Ltd (the “Company”) by the Edinburgh Police Court on July 19, 2022.
“The company has ceased operations with immediate effect.”
Hibs Commercial Director Greg McEwan confirmed that the company logo would be removed from all assets ahead of the new season, adding: “As title partner, Terry Healy Group was our round sponsor. We print the logos on the shirts ourselves so that it does not cost the club financially and we will not put their logo for the start of the league campaign.
“We are already having conversations with a number of companies regarding the cover art sponsorship opportunity, and when something is confirmed we will communicate it to our supporters.
“Before entering into a business partnership, we go through a thorough process to ensure that we have done our due diligence. However, we understand the current financial climate and the pressures on our partners.
A Hearts spokesperson added: “The club is aware of the situation regarding the Terry Healy group and our thoughts are with those who may be affected.”