Tuesday, September 22, 2020

Textile mill calls in administrators just three months after £1m buyout

Approximately 130 jobs are at risk as a £12m-turnover West Yorkshire textile business, Westwood Yarns, calls in administrators just three months after its new owners acquired the company for nearly £1m.

Employees were notified just two days before Christmas, although it is hoped administrators, KPMG, can avoid making redundancies by selling the business as a going concern.
Former owners Victoria plc, who had owned the business for 26 years and provided most of its work, sold the company in September after identifying it as a ‘loss-making, structurally uncompetitive, sub-scale business operating in a declining sector’
After acquiring the company for £1m in cash, the new owners Richard Collinge and Tim Kay, alongside Westwood Yarns’ managing director Trevor Chippendale, who had been on the board for 10 years hoped to build on the company’s £12.2m turnover but severe cash flow difficulties resulted in them having to call in administrators just three months down the line.
Paul Flint, associate partner at KPMG and joint administrator, said: “It is a difficult time of year for any business to enter administration and our team is in contact with employees at Westwood Yarns to assist them through this period.
“Arrangements are being made to ensure that staff will be paid their arrears of wages and holiday pay for the Christmas period. Over the coming days, we will be in touch with key stakeholders to explore our options, including the possibility of a sale, to maximise the return to the company’s creditors.”
The joint administrators will consider options in the coming weeks and has called on any interested parties looking to acquire the business and assets to come forward.

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