Engineering and laser cutting business sold out of administration for second time

A precision engineering and laser cutting business has been bought out of administration for the second time in a  little over a year.

Laser Shapes has been bought by Metallurgical Processing Limited saving 25 jobs in the process.

Last year the business was sold out administration although 22 jobs were lost in the process.

Laser Shapes (NW) Ltd has just been acquired by Metallurgical Processing Limited, which is part of the ARC Group.

The deal came after an extensive marketing exercise carried out by Dow Schofield Watts Business Recovery LLP.

This time around all staff have been retained and Metallurgical Processing Limited will continue to occupy the 90,000 sq ft leasehold premises in Witton Mill.

Beth Nutter, MD of Metallurgical Processing, commented: “This is the latest of several acquisitions within the ARC Group.

“Our management team are committed to the success of the business and will devote much needed turnover, capital and resource to the team.

“New management and ownership of the old Laser Shapes business will make the most of all that was good in the business, and build on the platform left by old management.”

Ben Barrett and John Carpenter of Dow Schofield Watts Business Recovery acted as joint administrators of Laser Shapes.

Ben Barrett said: “I am very pleased to have concluded the sale of the business and assets of Laser Shapes (NW) Limited to Metallurgical Processing Limited.

“Whilst there were a number of interested parties, and discussions progressed with several, the sale of the business to a progressive independent manufacturing group has resulted in a positive outcome for its employees.”

Dow Schofield Watts were advised by Stuart Beatson and Grahame Love of Taylors Solicitors.

In May of last year Laser Shapes UK went into administration.

At the time the firm generated turnover of approximately £4m per year and employed 51 staff, traded under three divisions.

They were Spiro-Fab, Engineering 2000, and Laser Shapes.

Lindsey Cooper and Jeremy Woodside of RSM were appointed joint administrators.

The company had been suffered cash-flow difficulties resulting from higher-than-expected costs relating to a recent move to bigger premises, as well as a downturn in the industry.
The laser-cutting division was sold to the  newly incorporated company Laser Shapes (NW), a company owned by existing management.
A buyer was not find for the two other divisions of the business.