Eastlake Work Group sold saving 239 jobs

WORK interiors specialist Eastlake Work Group has been bought out of administration by facilities management firm Europa saving 239 jobs.

The deal sees Europa acquire key elements of Eastlake Commerical Interiors, Work Facilities and Work Inc Group.

The businesses operate from sites in Leeds, Wakefield, Newcastle and East Kilbride in Scotland.

Eastlake went into administration earlier this month citing cash flow problems caused by customers delaying spending as a result of the downturn as the reason for its troubles.

Bruce Cartwright and Laurie K Manson of PricewaterhouseCoopers were appointed as joint administrators of Eastlake Work Group and to subsidiaries Burdew Contract Furniture, Work Inc Group and joint receivers to Eastlake Commercial Interiors.

Together with Garth Calow, they were also appointed as joint administrators to Belfast-based CM3.

The group’s subsidiary facilities management company Work Facilities was not placed into administration.

Mr Cartwright said of the sale: “In such a challenging economic environment, we are delighted to have secured a deal that has resulted in 239 jobs being saved.

“That we have been able to reach this conclusion within 10 days is testament to the ongoing support we have had from customers, suppliers and the employees. The contribution from these stakeholders has been crucial and I would like to thank them for their support throughout this difficult period.”

Mr Brown, chief executive of Europa Group, said that all outstanding salary commitments would be met.

“We want motivated, committed employees who feel included in the business – that way we can grow together and deliver a great service that adds value for our customers,” he added.

Eastlake Work Group was established in 1975 as a small family run office supplies group.

Last December, the £70m turnover company acquired Work Inc Group in an £8m deal.

Around 170 people are understood to be employed in the firm’s Wakefield operation.