Updated: 5th January 2016
A Manchester-based steel business has been rescued from administration after being beset by serious cash flow concerns towards the end of 2015.
Thos Storey Fabrications entered administration on December 23rd having seen a sharp fall in orders in the latter weeks of last year.
Business recovery experts from the Begbies Traynor Group were appointed as administrators of the company, which is based in Openshaw in east Manchester and is among the largest privately-owned suppliers of fabricated steel products in the UK.
An independent operation controlled by the corporate finance expert David Houghton acquired the company out of administration in a deal that preserves more than 100 jobs.
All members of the company’s Manchester-based workforce have seen their employment transferred to its new owners, with the exception of some senior members of its management staff.
“My team and I are delighted to have secured the future of this historic company following its unfortunate administration,” David Houghton is quoted as saying by Insider Media.
“We have acquired a restructured business and we have a strong balance sheet, a fabulous workforce and state-of-the-art technology. We intend to continue and build upon the relationships with customers and suppliers that Thos Storey has built over 50 years.”
Joint administrator Paul Stanley from Begbies Traynor’s Manchester office has explained that money to cover the December wages of Thos Storey’s workforce was in place before Christmas with the company’s sale out of administration completed a short time after administrators were appointed on December 23rd.
Stanley also suggested that selling the business to local investors could be good for the local economy as well as Thos Storey’s workforce.
“There has been a trend over recent years for manufacturing businesses to be relocated overseas which in my view can’t always be right for the local economy,” he said.
“It is good therefore to see local investors having the faith to finance the rescue of this business through the administration process.”
In its most recent financial accounts, Thos Storey Fabrications reported annual turnover worth in excess of £11.5 million but total pre-tax losses worth just over £220,000. Our extensive office network comprises 100 offices across the UK with a partner-led service offering immediate director advice and support.