28 jobs saved at Bolton manufacturer as administrators secure rescue deal

28 jobs have been saved at a Bolton-headquartered manufacturing company after being bought out of administration.

Red Cube GRP Limited, trading as YBS Composites, specialised in the manufacture of decorative and architectural composite mouldings.

As a result of substantial trading losses, the company ran into cash flow problems and accrued HMRC arrears.

Administrators were eventually appointed when it was evident that the company had insufficient cash to continue trading.

Kelly Burton and Robert Dymond from insolvency specialists Wilson Field were appointed as joint administrators on 21st March.

The duo concluded the sale of the business and assets for an undisclosed sum to an unconnected company, House of Canopies Limited based in York.

Kelly Burton, director and licensed insolvency practitioner at Wilson Field, said: “The first two years trading saw substantial losses after deduction of significant business overheads as well as administrative and sales expenses. Cash flow pressures ensued resulting in arrears owing to HMRC.

“As administrators we sought a purchaser for the business. House of Canopies Limited based in York purchased the company’s business and assets. In order to agree a sale as a going concern, we traded the business in Administration.

“As well as attracting a better price and thereby a better return to creditors, the sale also preserved 28 jobs and mitigated TUPE liabilities in the region of £93,782. This means the business, which specialised in high quality composite products for the building industry, has a new future moving forward.”

As a manufacturer of GRP Composite decorative and architectural mouldings, the company had more than 30 years manufacturing experience in bespoke and off-the-shelf products including door canopies, dormer windows, bay and porch roofs and chimneys.

Valuation was handled by David Currie & Co of Manchester with legal services and advice from solicitors Clarion LLP in Leeds.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →