NEW CHAPTER AS MANUFACTURER STOREY RESCUED
11th January 2016
A MANUFACTURING company based in east Manchester has been sold out of administration in a deal saving around 100 jobs.
Thos. Storey Fabrications based in Openshaw makes parts such as digger buckets for heavy construction machinery and supplies the likes of JCB, Caterpillar and Terex.
It appointed Begbies Traynor as administrator last month after a dramatic slump in orders in the second half of 2015 caused grave cashflow problems.
In 2014 the business, which had recently been seeking to diversify away from construction into the agricultural machinery sector, had revenues of £11.5m, but had dropped back during 2015.
Paul Stanley, managing partner of Begbies Manchester office and joint administrator said: "This type of assignment typically arises just before the holiday period and requires urgent attention due to the critical cash flow position.
"All December wages were covered pre-Christmas and we were able to successfully complete a sale of the business as a going concern shortly after our appointment. This has protected over 100 Manchester-based jobs and should secure the long term future of this reputable, well established business.
"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. It is good therefore to see local investors having the faith to finance the rescue of this business through the administration process."
The business was acquired by a new business controlled by David Houghton, a Chester-based corporate financier and founder of Bridge Houghton.
Houghton said: "My team and I are delighted to have secured the future of this historic company following its unfortunate administration. 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 fifty years."
All Thos Storey's employees apart from two senior members of management. MD John Huggins and chairman Fred Ellis, have been transferred to the purchaser.
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