Private equity investor swoops for stricken textiles firm
Knitting Division, a manufacturer of weft knitted fabrics used to make ladies fashion and childrenswear, has been bought out of administration by private equity investors.
The Leicester-based company experienced “significant” financial challenges following decreased demand from retailers that were forced to close in response to Covid-19 restrictions, and on 25 March, Miles Needham and Simon Carvill-Biggs, partners at specialist business advisory firm FRP, were appointed joint administrators of the company.
All employees will continue to work from the business’s warehouse in Wigston.
Needham said: “The Covid-19 pandemic has had a significant impact on all types of firms. The closure of non-essential retail has created huge pressures across the entire supply chain, including clothing manufacturers, which resulted in an unsustainable decline in sales for Knitting Division.
“We are pleased to have been able to secure new owners who have retained all staff and will now be able to take the business forward. We look forward to seeing the company thrive as restrictions ease and the retail sector begins to reopen.”