100 Burnley jobs saved at Metalrax
Niche engineering group Metalrax has been sold by administrators, saving 100 jobs in Burnley and almost 300 more throughout the UK.Will Wright and Mark Orton from KPMG have been appointed joint administrators to the AIM-listed Metalrax Group plc, and its subsidiaries Metalrax Engineering Support Services Limited, Metalrax Specialist Applications Limited and Down & Francis Industrial Products Limited.
On appointment, the administrators sold the business and assets to a group of companies headed by Bowman Birmingham Limited.The group will trade as Arc Specialist Engineering and is backed by specialist private investors who have committed to a significant investment programme in the company.
In addition, as part of the transaction, solvent share deals were completed for two companies within the group, both of which were not affected by the insolvency process – Metalrax Housewares Limited, which was sold to Cable Capital Partners Limited and Metalrax Overseas Holdings Limited, which was also sold to Arc Specialist Engineering – securing a total of 387 jobs.Will Wright, joint administrator from KPMG said: “The group has experienced difficult trading conditions for some time, primarily within their consumer durables division. While the group’s management team has divested in recent years to focus upon niche areas, trading in this division has led to a significant drain on the group’s financial situation. “Being able to sell the business and assets, together with shares in solvent businesses within the group, has been a great solution to securing a future for the business and more importantly just under 400 jobs.”