Hearts and Hibs sponsor ceases trading, citing 'unsustainable cash-flow problems'
Hibs have been dealt a blow after a key sponsor entered provisional liquidation.
The Terry Healy Group, which also had a working relationship with Hearts, said ‘unsustainable cash-flow problems’ relating to liabilities built up during the Covid-19 pandemic allied with the soaring cost of labour and raw materials, shrinking margins, delays to contracts, and slow payments were behind the decision to cease trading.
A total of 51 people have been made redundant despite extensive efforts to turn things around, with provisional liquidation seen as the only option according to FRP Advisory Trading partner Callum Carmichael, who said: “Unfortunately, the business has been unable to overcome very serious financial problems and closure was the only option. We will now focus on asset realisations including the sale of the heating maintenance contracts database.”
The Easter Road side struck a three-year deal with the Dalkeith-based firm in July 2021, with the company designated a ‘principal sponsor’ and its logo carried on the sleeve of the playing kit.
The Tynecastle Park side agreed a two-year arrangement, with the logo appearing on the players’ shorts.
A message posted on the firm’s website reads: “I would advise that Callum Angus Carmichael and Chad Griffin of FRP Advisory Trading Limited were appointed Joint Provisional Liquidators of Terry Healy Group Ltd (the “Company”) by Edinburgh Sheriff Court on 19 July 2022.
"The Company has ceased trading with immediate effect."
Hibs Commercial Director Greg McEwan confirmed the company’s logo would be removed from all assets ahead of the new season, adding: “As a principal partner, Terry Healy Group were our sleeve sponsors. We print the logos on the jerseys ourselves so this will not cost the club financially and we will not don their logo for the start of the league campaign.
“We are already having conversations with a number of businesses regarding the sleeve sponsorship opportunity, and when something is confirmed, will communicate this to our supporters.
“Before agreeing any commercial partnership, we go through a thorough process to ensure we have done our due diligence. However, we do understand the current financial climate and the pressures that are on our partners.”
A spokesperson for Hearts added: “The club is aware of the situation regarding the Terry Healy Group and our thoughts are with those who may be affected.”