Bosal administration puts jobs at risk

ADMINISTRATORS are still weighing up potential offers for Preston car parts firm Bosal UK, which failed earlier in the month putting 161 jobs at risk.

Phil Duffy and David Whitehouse of the Manchester office of Duff & Phelps were appointed to the business on January 11.

It is continuing to trade while they consider bids for all or parts of the enterprise which specialises in car exhausts.

In a statement they said the business, part of a larger Dutch group, had been loss-making for several years in part due to more durable exhaust systems reducing demand.

They also cited competition from manufacturers moving to cheaper production bases in Eastern Europe and and the loss of a legal dispute with around 50 staff regarding redundancy packages.

Mr Duffy said: “The changing competitive landscape combined with a long running legal dispute with former employees regarding enhanced redundancy packages, has meant that the company is no longer able to meet its financial obligations.

“The joint administrators will now explore restructuring opportunities including a sale of part or all of the business and/or assets of the company.”