28 jobs saved at Bolton mouldings firm
A Bolton-headquartered company, which specialised in the manufacture of decorative and architectural composite mouldings, has been bought out of administration, saving all 28 jobs.
Red Cube GRP, trading as YBS Composites, was incorporated in 2014 and was based at Cawdor Mill in Farnworth, Bolton.
As a result of substantial trading losses the company ran into cash flow problems and accrued HMRC arrears.
When it was evident that the company had insufficient cash to continue trading, administrators were appointed to stop the position deteriorating.
Kelly Burton and Robert Dymond from Yorkshire-based insolvency specialists Wilson Field were appointed as joint administrators on March 21.
They concluded the sale of the business and assets for an undisclosed sum to an unconnected company, House of Canopies Limited based in York.
Kelly Burton, director and licenced insolvency practitioner at Wilson Field, said: “The first two years trading saw substantial losses after deduction of significant business overheads as well as administrative and sales expenses.
“Cash flow pressures ensued, resulting in arrears owing to HMRC.
“As administrators we sought a purchaser for the business.
“House of Canopies, based in York, purchased the company’s business and assets.
“In order to agree a sale as a going concern, we traded the business in administration.
“As well as attracting a better price, and thereby a better return to creditors, the sale also preserved 28 jobs and mitigated TUPE liabilities in the region of £93,782.
“This means the business, which specialised in high quality composite products for the building industry, has a new future moving forward.”
As a leading manufacturer of GRP composite decorative and architectural mouldings in the UK, the company had more than 30 years manufacturing experience in bespoke and off-the-shelf products, including door canopies, dormer windows, bay and porch roofs and chimneys.
Valuation was handled by David Currie & Co of Manchester, with legal services and advice from solicitors Clarion LLP in Leeds.
