Coventry manufacturer saved from closure after Chinese-based rescue
ONE of Coventry’s oldest manufacturers has been saved from going out of business after a Chinese-backed rescue deal was struck to safeguard the future of the firm.
Administrators were called in to Cash’s UK last month – and its parent company, Composite Materials Ltd – after the woven labels and accessories manufacturer got into difficulties. The collapse of the firm saw 47 people made redundant.
Will Wright and Mark Orton, of KPMG’s Restructuring practice, have now overseen the sale of the business and its assets to Cash’s Apparel Solutions (UK) Ltd, a new company led by members of the former management team and backed by Hong Kong-based The Jointak Group, previously a key supplier to Cash’s.
As part of the sale, all remaining 11 employees will transfer to the new company. Administrators said it was hoped UK production would resume immediately, with the possibility of new jobs being created.
Commenting on the deal, Gary Powles, managing director of Cash’s Apparel Solutions (UK) Ltd, said: “We are absolutely delighted to have been able to secure this deal, which will see the famous Cash’s name continue to trade from its home in Coventry. There’s no doubt it’s been a difficult few weeks, but we’re keen to start production on site as soon as possible, and are also hoping to recruit workers to the business over the coming weeks.”
Will Wright, partner at KPMG and Joint Administrator, added: “From day one of our appointment, we were delighted with the interest and affection shown for the Cash’s business. The ongoing support of customers and suppliers has been essential in securing a sale in such a short timescale. We wish the management team well for the future.”
The business had employed 58 before going under and was still making around 9,000 name tapes a week at the time of collapse.
Cash’s was originally set up in 1846 by Quaker brothers John and Joseph Cash.
By 1964 the firm was appointed ‘Manufacturers of Woven Name Tapes to Her Majesty the Queen’.
