Jobs on the line as buyer for manufacturer backs out at 11th hour

A DEAL which would have saved a manufacturer from administration has fallen through at the 11th hour, putting 35 jobs on the line.

Realstone, based in Chesterfield, appointed joint administrators Keith Marshall and Gareth Harris of RSM Restructuring Advisory on 18 May when underperformance and sustained trading performance made the business unviable.

Administrators said they were looking at other options, but yesterday had to cut six jobs at the business. More redundancies are expected unless a deal for the business and assets is completed.

Limited manufacturing operations will continue “to maximise realisations for creditors” and enable staff to keep working.

The business had its head office in Chesterfield, as well as sites in Glasgow and Penrith in Cumbria.

Keith Marshall, RSM Restructuring partner and one of the joint administrators, said: ‘It is disappointing that after two weeks of trading the business in Administration in order to preserve the opportunity as a going concern, that the front running purchaser was unable to complete the transaction as intended.

“We continue to assess our options with a view to maximising realisations for creditors and attempting to safeguard as many jobs as possible.”