Dermasalve goes into insolvency after failing to secure funding

Attention was drawn to Dermasalve’s struggles back in June this year when shares were suspended due to its failure to publish 2007’s annual results.

The Newcastle-based company was struggling to make repayments on outstanding loans and had failed to find the necessary funds to continue business.

Dermasalve has now gone into insolvency and a creditor’s meeting is to be held in London on December 1, according to press reports.

Expansion plans went sour​

During 2007 things were looking positive for the company and expansion into new markets was planned, however the company has blamed the challenging market conditions for its inability to find the necessary funds.

In September 2007 it closed a deal with a South African health care firm involving a range of moisturisers including products for the face, body, hands, heels and one product specially formulated for infants and babies.

High hopes for hand cleanser​

In addition, the company had high hopes for its hand cleanser, SafeCleanse, which it claims is effective at killing viruses, bacteria and fungi, including MRSA and avian flu, whilst minimising the skin damage associated with most alcohol products.

A further partnership with South African company New Horizons, entered into last year, was expected to bring significant revenues to the company, involving the launch of the hand cleanser across the continent.

At the time, the company stated it expected the deal to bring it up to £5 million in sales revenue in 2008, with significant increases hoped for in future years