West Bromwich manufacturer rescued from administration

A West Bromwich manufacturer has been saved from collapse after being acquired out of administration.

Colson Group Holdings has acquired a majority of the assets of Colson Castors through its new subsidiary, Colson UK Ltd. The deal secures around 80 jobs.

The new company will manage the business at its current location while it arranges to relocate the assets purchased to a new location in the area. Included in the assets purchased are all of the Colson Castors brands.

“We are pleased the Colson Group bid was successful and look forward to transitioning the business to our new company,” said Tom Blashill, Colson Group CEO.

“Our experienced team in the UK is committed to providing outstanding products and support to our customers in a structure that will support their future success.”

Colson Castors entered administration in December 2016 with Grant Thornton UK acting as administrators. A sale process took place while the company was in administration.

Joint Administrator, Eddie Williams said: “I am very pleased to conclude the sale of the majority of the assets to Colson UK, which delivers the best outcome for the company’s creditors and stakeholders.”

The Joint Administrators will now market the company’s freehold property and residual assets, to maximize the return to creditors.

“We are looking forward to growing our business and servicing our customers,” said General Manager and Finance Director of Colson UK, John Smithies.

“Our core team remains in place to continue to provide the high level of customer service our customers expect.”

“The UK plays an integral role in our global customer supply chain process,” added Colson UK Sourcing and Operations Director, Jayne Simonds. “Our highly qualified supply chain team will work to ensure there are no interruptions in product delivery, as our new company allows us to continue to leverage Colson Group’s supply chain strengths.”

Colson Castors imports and manufactures castors for the retail, medical and industrial sectors.

Colson had a turnover of c £12m for the year ended December 31, 2015 but despite a number of operational improvement initiatives, the business continued to be loss-making for a number of years with significant funding being provided by global parent, the Colson Group.

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