Jobs saved as joinery company is bought out of administration
An established Rotherham-based joinery business which plunged into unmanageable debt after being badly hit by pandemic-related lockdowns has been sold, saving 16 jobs.
The sale of Mustang Joinery and its assets was completed following the 4 May appointment of Andrew Mackenzie and Louise Longley, of Begbies Traynor, as joint administrators.
Mustang Joinery, which was founded in 1981, had specialised in the manufacture of a range of window frames, staircases and door sets for local and national developers.
The business suffered a downturn in turnover with the impact of prolonged lockdowns and restrictions caused by COVID-19 over the last two years causing this to accelerate significantly. This resulted in a build-up of HMRC arrears which could no longer be serviced.
After a period of marketing carried out by Begbies Traynor Group, a pre-packaged sale to Mustang Bespoke Joinery Limited completed on 11 May. Gateley Legal provided advice to the administrators.
Longley said: “After more than 40 years of trading, Mustang Joinery became another casualty of the pandemic, with multiple lockdowns resulting in falling turnover and, ultimately, an inability to service its mounting HMRC arrears.
“Having sought a buyer for the business, we are pleased to have secured this sale which is good news for employees, customers and suppliers.”