Shropshire firm makes 30 workers redundant but buyout saves a further 70 jobs
Thirty workers have been made redundant at a construction company in Shropshire which plunged into administration, only to see the business bought out instantly by a new company.
The move to rescue Minshall Construction in Market Drayton has seen a further 70 positions secured, however.
Minshall fell into administration on Monday, having made the 30 staff redundant.
Its underlying steel buildings supply business has now been bought out by a new company – Minshall Construction (UK) – which was established in December.
The move has ensured that the remaining staff have retained their roles with the business, which is based in Bert Smith Way on the Adderley Road Industrial Estate.
Administrators said the company had been suffering from "cash flow pressures" prior to the move, and was facing problems in the increasingly squeezed agricultural sector in particular.
The most recent available accounts for the company, for the period up to July 31, 2013, reveal that while it was achieving turnover of more than £11 million, it suffered an £804,000 loss for the year.
Bosses had been putting measures in place to steady the ship, but said the industry was continuing to face difficulties.
Arvindar Singh-Sall, director and joint administrator at FRP Advisory which handled the case, said the immediate sale of the business had ensured "a continuity of supply to its loyal and long-standing customer base".
"We are delighted to have secured the future this well-known Shropshire-based steel structure supply business, securing 70 jobs in the process while ensuring vital continuity of management experience under a new company structure," he said.
"The business had traded successfully for a number of years until the tough economic climate in recent months affected its cash flow, putting unsustainable financial pressure on its previous corporate and financial structure.
"The sales process has ensured minimal disruption to customers and suppliers alike. We wish everyone involved with the on-going business every success in the future."
Minshall was established in 1987, and has worked on a string of major projects around the county, including providing the steel frame for the new Joule's Brewery in the town, and for the Cheese Warehouse in Whitchurch.
The company also has a northern office, which is in Lancaster in the North West.
The directors of Minshall Construction (UK) have so far been unavailable for comment.
