Jobs saved after clothing manufacturer bought out of liquidation
More than 40 jobs have been saved at three companies, including two Blackburn clothing manufacturers, following their acquisition.
They had been impacted by debts following the collapse of national department store chain Debenham, and a contract to supply PPE (personal protective equipment) for the Government awarded in July 2020 at the height the coronavirus crisis.
Community Commodities Limited, Cookson & Clegg Clothing Ltd and Norton & Sons Limited have all been sold out of liquidation.
Community Commodities and Cookson Clegg are clothing manufacturers based in Blackburn. Norton & Sons is a Savile Row Tailors.
The companies are part of group owned and operated by the clothing designer Patrick Grant and have been sold to connected companies, Community Clothing (Lancashire) Ltd, C&C Textiles Ltd and Norton Hammond & Tautz Ltd, in deals that save jobs and ensure continuity and ongoing supplies.
Opus Restructuring & Insolvency, which has offices in Liverpool and Preston, handled the sales.
Joint liquidator, Ian McCulloch, said: “The group has been hit by a number of external factors outside its control.
“The coronavirus pandemic has undoubtedly resulted in tough times for retailers.
“These difficulties were increased after the group suffered a significant bad debt following the administration of Debenhams.
“Furthermore, significant losses were incurred after undertaking a contract to produce PPE for the UK Government.”
He added: “Alternative options, including additional investment were considered, but the level of liabilities across the group meant liquidation was the most suitable option. Having taken this step we are delighted to complete a sale that will preserve jobs for the group’s employees.”
Patrick Grant said: “This has been by far the most difficult two years of my life, both professionally and personally.
“I am just so incredibly pleased and relieved that we could agree a rescue package for the business that not only saves all of the jobs, but also allows us to continue with our work to help rebuild UK textile communities like Blackburn.”
The liquidators were advised on the transaction by Harrison Drury in Preston. KBL Solicitors in Blackburn acted on behalf of the purchasers.
