50+ jobs axed
Yarn company fails again as costs force closure
A company set up just six months ago to acquire the business and assets from the administrators of the historic Bonar Yarns in Dundee has failed for a second time.
John Newman created Newman Bonar to acquire the assets of the company which had been involved in the manufacture of textiles for over a century.
Newman Bonar made specialist polypropelene yarns used in carpets, floor coverings and had recently focused on materials for sports pitches. The company supplied a global customer base and employed 57 staff.
Following the acquisition, the directors sought to stabilise the business and return it to viability. The owner provided significant funding and kept the business operational whilst endeavouring to achieve the necessary trading agreements.
Despite the directors’ efforts, the company has faced intense challenges with significant increases in costs through the well-publicised high inflationary environment, particularly energy costs.
In addition, it had significant ongoing overhead costs and was unable to re-establish contracts with key customers at a sufficient level to make the business viable and reduce the ongoing funding need.
As a result of these issues and, having explored avenues to secure additional investment, the directors made the difficult decision to appoint joint provisional liquidators to wind up the business.
The company is no longer able to continue to trade and so the majority of the company’s employees have been made redundant. A small number of employees have been retained to assist with the orderly winding up of the business.
Blair Nimmo, chief executive of Interpath Advisory and joint provisional liquidator, commented: “This has been a well-known Dundee business for many years with a strong global reach and it is extremely disappointing for the company’s many stakeholders, funders and employees that it could not continue to trade viably.”
Geoff Jacobs, managing director at Interpath Advisory and joint provisional liquidator, said: “This is indeed very disappointing for Dundee city to see the closure of a long standing business.
“Our focus will be on supporting the employees affected, and securing and realising the assets of the company which primarily comprise its name, customer base, stock and plant and machinery.
“Clearly it would be great to see the business continue in some manner and therefore, if any party has an interest in acquiring the business and/or its assets, they should contact the joint provisional liquidators as soon as possible.”
John Newman, owner of Newman Bonar has advised that he would like to thank the staff for their support, commitment and dedication to working with the board over many months to try and secure a future for the business and recognises this is a difficult and disappointing outcome for everyone concerned with the company.