All jobs at a Lancashire manufacturing business have been saved after the company was sold out of administration in a pre-pack deal.
Gareth Harris and Chris Ratten of RSM º£½ÇÊÓƵ Restructuring Advisory LLP were appointed joint administrators of Gilwood (Fabricators) Company, on November 1. Based in Heywood, the company is a family-run metal fabrication business specialising in making pressure vessels and static process plant equipment.
The business manufactures products for a number of industries including oil and gas, petrochemicals, nuclear and food and drink. RSM said it was appointed after "global and economic uncertainty impacted new orders due to rising interest rates and material costs".
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The firm has been sold to DC Norris and Company, a manufacturer of industrial food and beverage processing equipment which employs over 200 people. Gilwood employs 26 members of staff, all of whom will remain in their jobs.
Chris Ratten, RSM º£½ÇÊÓƵ restructuring partner and joint administrator, said: "Gilwood is an established fabrication company in the North-West, and it is unfortunate that it has suffered over the last few months as a result of a delay and postponement of orders. Much of this is down to the economic uncertainty faced in the global markets by its customers and the decline in capital investment in projects due to rising interest rates and costs of materials.
"Given the ongoing economic challenges, we are pleased to have helped save the future of the company and support the regeneration of its existing pipeline. Securing its sale to DC Norris will protect all its skilled workforce for many years to come and allow Gilwood to continue operating in the market."
David Norris at DC Norris and Company added: "We were very sorry to see the demise of the well-respected family business Gilwood (Fabricators) Company Limited. Working with RSM, DC Norris has acquired the business as well as the assets from the administrator, and will also offer all the employees new jobs in a newly formed addition to the DC Norris group called Gilwood Ltd.
"The company will have our full commitment and support to maintain their high standards of quality and service going forward, including investing in new equipment to improve efficiencies over the next few years."
