Sara Davies paid £425,000 to buy back Crafter's Companion, documents reveal

Dragons' Den star Sara Davies saved her beloved Crafter's Companion from collapse in a £425,000 deal, newly released documents reveal.

The company, which Ms Davies founded as a student, had accumulated debts of £16.7m before being bought out of administration by Ms Davies and her backers earlier this year. The move salvaged 134 of the firm's 148 jobs, although one of its stores in Derbyshire was forced to close.

Despite being the founder, Ms Davies had ceded control of the firm to investment group Growth Partners. According to the administrators' report by Interpath, Growth Partners held £8.2m in loan notes on the company but is unlikely to receive any return on this investment. Additionally, Santander is owed nearly £1.9m, with some of this amount expected to be repaid.

The report explains: "The company was loss-making, recording a loss before tax of £6.7m and £5.1m in the years ended 31 March 2024 and 31 March 2023 respectively.

"The company encountered significant cash flow challenges in November 2024. A long running decline in sales revenue and consequent losses resulted in a cash runway that limited viable solvent alternatives for the company moving forward.", reports Chronicle Live.

The administrators' report reveals that at the time of its administration, the company had approximately 200 trade creditors, including several firms from the North East, as well as suppliers in China and the US. The report also notes claims for sales tax across multiple American states.

Crafter's Companion, previously one of the North East's most rapidly expanding companies, saw its founder Ms Davies gain popularity as a television personality through her work on shopping channels showcasing Crafter's Companion products, followed by appearances on Dragons' Den, Strictly Come Dancing, and other BBC programmes. Following a salvage deal over the Christmas period, Ms Davies expressed optimism about the potential to revitalise the business after a challenging period of trading.

She commented: "I am really really confident in the go-forward plan that we have. I know the staff. It's not me that's turning this business around - it's the staff. I'm just leading them.