116 redundancies as Bosal UK closes
After three months of failing to find a buyer, Bosal UK has ceased production at its Walton Summit site, at a cost of 116 jobs.
The exhaust manufacturer went into administration in January, citing longer-lasting products which require replacing less often, competitors using cheaper overseas manufacturing and legal action taken by 48 of its staff as the reasons behind its troubled finances.The firm was £20m in debt and couldn't find a buyer as it didn't own any of the design or intellectual property rights to the products it produced.
Administrator Duff & Phelps said: "A suitable purchaser could not be found for the company’s manufacturing division and as a consequence all production has ceased, resulting in 116 redundancies."Following a lengthy marketing period it became apparent that no purchaser was in a position to submit a deliverable bid for the business as a whole, or specifically for the company’s manufacturing facilities.” The Dutch-owned Bosal Group later announced that it will be establishing a new sales and marketing company, Bosal Automotive and Industrial Components Ltd (BAIC), based near Preston, to look after the needs of current and future customers for Bosal products and services.
