Administrators re-open manufacturing firm as efforts begin to save jobs

A Lincolnshire manufacturer has reopened after administrators were called in and made “minimal” job cuts at the firm.

As we exclusively revealed last week, family-run MTAG Composites appointed administrators from RSM UK. At the same time, administrators were appointed to parent company MTAG (Holdings) and sister firm Electric Future Group.

Based in Coningsby, Lincolnshire, MTAG Composites is the trading company in the group and is a manufacturer of moulded composite parts for the rail, aerospace, automotive, construction and leisure sectors, producing items such as train interiors, aircraft seating and boats.

Its latest available accounts show that the firm employs around 120 people.

The administrators took the decision to temporarily cease day-to-day operations immediately upon their appointment.

Following an accelerated and detailed review of the financial position, the administrators have decided to restart day-to-day operations on a limited basis, in line with the timetable for an accelerated sales process.

Administrators have made minimal redundancies but have retained all of the operational and production staff on a “lay-off” basis. The administrators understand that employees had not been paid for some time prior to their appointment and they are working with the Redundancy Payments Service (RPS) to ensure that those affected receive their statutory entitlements “at the earliest possible opportunity”.

Gareth Harris, restructuring advisory partner at RSM UK and joint administrator, said: “The decision to recommence operations demonstrates the commitment of all stakeholders to attempt to save this business and the livelihoods of the staff. Although not at full operational capacity, ongoing production will assist us in finding a buyer for all or part of the businesses.”

Deviesh Raikundalia, restructuring advisory director at RSM UK and joint administrator, added: “We have received significant interest in the acquisition of the business in the short time that we have been undertaking the sales process. We are continuing to engage with all parties who have expressed an interest in acquiring all or part of the businesses. Staff that we have retained since our appointment will continue to be paid and we appreciate the commitment and patience shown by the employees to date.”

Any party that wishes to express their interest, should do so by contacting RSM UK by 12pm on Monday 29 July.