Rescue deal saves 20 jobs at Barrow engineer
A Barrow engineering firm, which was established more than 35 years ago, has been acquired out of administration in a deal that has saved 20 jobs.
Ian McCulloch and Dean Watson of insolvency and restructuring experts Begbies Traynor were appointed joint administrators of Joss Engineering on May 17, 2019.
The company has been operating in Barrow since 1982.
It became a supplier of precision engineering to the aerospace industry. It also supplies a number of aeronautical companies with aerospace fasteners.
The pre-pack administration deal arranged by Begbies Traynor saves 20 jobs and ensures a continuity of trade for staff and customers.
Ian McCulloch, director of Begbies Traynor, said: “Like many SME’s across our region, Joss Engineering experienced some cashflow issues at the start of the year.
“Ultimately, this resulted in the director of the company presenting a proposal to ensure creditors of the company received 100p in the pound under a company voluntary arrangement (CVA).
“Unfortunately, this was rejected by creditors, leaving no alternative but to complete a pre-pack administration.”
He explained: “The majority creditors voted to reject the proposed CVA as it did not meet their acceptance criteria.”
However, the purchasers, Joss Engineering (Barrow) Ltd, are made up of directors that are former employees of Joss Engineering and include a relation of one of its former directors, keeping the business as a family-owned concern.
Mr McCulloch said: “The result is that jobs have been saved and orders can be fulfilled, which will result in enhanced realisations and a greater return to creditors.”
He added: “Joss Engineering is a strong brand and an historic employer in Barrow and the team are looking forward to the future.”