90 jobs saved as administrators sell division

90 jobs have been saved after Redhall Group sold one of its divisions just hours after it appointed administrators.

Manufacturer group Avingtrans has bought steel door maker Booth Industries for £1.8m.

Grant Thornton partners Chris Petts and Sarah O’Toole were yesterday appointed as joint administrators to Wakefield-based Redhall Group plc, Booth Industries and Redhall Jex.

Two group companies, Redhall Networks and Jordan Manufacturing, have not yet gone into administration, though administrators said “it is expected that they will do so shortly”.

Redhall Group had previously announced its intention to appoint administrators on May 28.

The manufacturing services group had suspended trading in its shares on the Alternative Investment Market on May 24 after revealing there was “no reasonable prospect” of plugging a funding gap.

The sale of Booth Industries has found a new owner for the Bolton-based business, which made a pre-tax profit of £0.3m on revenues of £11.7m last year.

Steve McQuillan, chief executive of Avingtrans, said: “This strategic acquisition allows Avingtrans’ PSRE division to further expand its offerings and create synergies for its key clients.

“The acquisition of Booth adds to the foundations of the PSRE division and exemplifies our strategy to build shareholder value by bringing together niche businesses, fusing their individual capabilities and complementary activities to achieve critical mass.”

The administrators were advised by a team from Squire Patton Boggs, led by John Alderton that included Mark Prior, Jon Chesman, Charles Draper and Emily Davis.