Jobs saved as clothing manufacturers rescued out of liquidation

More than 40 jobs have been saved after three related clothing manufacturers were bought out of liquidation following financial struggles.

Community Commodities Limited and Cookson & Clegg Clothing Ltd, both based in Blackburn, and Norton & Sons Limited, a Savile Row Tailor, are part of a group owned and operated by the clothing designer Patrick Grant.

Each had been affected by external factors, such as the closure of high streets during the Covid-19 pandemic, and administration of Debenhams which left significant bad debt.

The companies have been sold to Community Clothing (Lancashire) Ltd, C&C Textiles Ltd and Norton Hammond & Tautz Ltd, in transactions that save jobs and ensure continuity and ongoing supplies.

Ian McCulloch, the joint liquidator rom Opus Restructuring & Insolvency, said: "The group has been hit by a number of external factors outside its control. The coronavirus pandemic has undoubtedly resulted in tough times for retailers. These difficulties were increased after the group suffered a significant bad debt following the administration of Debenhams. Furthermore, significant losses were incurred after undertaking a contract to produce PPE for the UK government.

"Alternative options, including additional investment were considered, but the level of liabilities across the group meant liquidation was the most suitable option. Having taken this step we are delighted to complete a sale that will preserve jobs for the group’s employees."

Patrick Grant said: "This has been by far the most difficult two years of my life, both professionally and personally. I am just so incredibly pleased and relieved that we could agree a rescue package for the business that not only saves all of the jobs, but also allows us to continue with our work to help rebuild UK textile communities like Blackburn.”

The liquidators were advised on the transaction by Harrison Drury in Preston. KBL Solicitors in Blackburn acted on behalf of the purchasers.

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