Steel manufacturer bought out of administration
MANUFACTURER Kiveton Park Steel has been bought out of administration, saving the jobs of 50 employees.
The family-owned company employed 120 at the time of its administration in September 2015 . The remaining 70 jobs have not been saved.
At the time of its administration 10 jobs were lost. By Christmas 2015 another 10 had been lost through ‘natural attrition’ leaving 100 employees.
The business has now been sold to Henry Dickinson, an owner-manager of manufacturing companies including West Midlands-based Norton Aluminium, which was bought out of administration itself in 2012, having been a victim of ‘no win no fee’ lawyers.
The sale will allow Kiveton to continue trading on its current 15 acre Sheffield site at Dog Kennel Hill.
In December 2015, a deal was secured that would allow Kiveton to keep trading until June 2016, giving administrators FRP Advisory time to find a buyer for the beleaguered business.
The further extension to key customer supply agreements followed a two-month deal agreed in October, ensuring the company had sufficient funding to continue to trade.
It blamed poor cash flow due to a decline in demand from the specialist steel sector as the cause.
Kiveton, which manufactures drawn steel bar and wires has traded since 1922, and has customers including Delphi Automotive, from which it received a financial lifeline during the process.
ABN AMRO Commercial Finance, which supported the deal, was advised by Irwin Mitchell.
