Widnes coatings specialist MCL rescues 44 jobs in deal with administrator
Written on July 7, 2011 by Douglas R
ALL 44 staff at a Widnes-based specialist coatings company have kept their jobs after a rescue deal.
Merseyside Coatings, based on Halebank Industrial Estate, went into administration on June 27, when BDO business restructuring partners Dermot Power and Tracey Pye were appointed as joint administrators.
However, less than two weeks since their appointment a new management company made up of previous directors of Merseyside Coatings has succeeded in acquiring the business and some of its assets in a “pre-pack” arrangement to continue trading and rescue all 44 jobs.
The new entity, MCL Coatings, will continue to trade from its Pickerings Road base in Widnes, but the administrators will now seek to sell a second 4.4 acre site, including a 22,725 sq ft warehouse situated on Everite Road which was excluded from the MCL Coatings deal.
Dermot Power explained: “The failure of Merseyside Coatings Limited can be attributed to the difficult market conditions, together with significant bad debt.
“Principally, I am delighted that all jobs have been saved with the transfer of staff to MCL Coatings Limited and that the business can now move forward.”
Mike Young, former managing director who worked on the deal with his son Chris, said he was pleased to have managed to salvage 44 jobs, but was critical of the level of support for small firms in the current economic circumstances.
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