Pre-pack deal for manufacturer saves 60 jobs

A Roltech installation at Liverpool Bulk Terminal
A Roltech installation at Liverpool Bulk Terminal

Manufacturer Roltech Engineering, which makes structures and conveyors for the quarrying industry, has got itself out of a big hole by relaunching itself after a pre-pack administration.

The Staffordshire company has been bought by its existing management team through a new company, Roltech Mechanical. The deal saves the jobs of the 60 staff at its Newcastle-under-Lyme site.

Roltech had been forced to appoint administrators after two substantial disputed debts caused overwhelming cash flow problems.

The company was already facing cash flow problems, having identified in its most recent accounts that were signed off in May, that “cash flow is proving to be a major issue” as the company grew and wage costs rose.

Jeremy Woodside and Lindsey Cooper of RSM Restructuring Advisory were appointed joint administrators on August 1 and the sale was done immediately.

Cooper said: “The sale secures the future of a leading regional engineering company which is not only great news for 60 employees, but it also offers the best outcome for creditors and ensures continuity of service for its loyal customers.”

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