Rescue deal saves 78 jobs at Black Country family firm

H&E Knowles (Lye), which has factories in Quarry Bank and Cradley, collapsed into administration but a deal has now been done to sell the business to two family members.

Administrators from the restructuring services division of Mazars, the international professional services firm, were called in just 24 days before Christmas and secured the sale to Peter and and David Knowles, who have created a new business, H&E Knowles (Manufacturing), to buy 'certain parts of the business and assets' from the administrators and save all the jobs of the 78-strong workforce.

David Knowles said: "We are deeply saddened at the demise of our old family business, both for ourselves and our long standing suppliers.

"We have tried hard to save the jobs of the entire workforce. We are now looking forward to working together with the existing customers and suppliers to build a better future."

Set up in the early 1920s, H&E Knowles manufactured a wide range of products including garden-ware such as wheelbarrows, greenhouses, storage units and incinerators. It has factories in Talbots Lane, Quarry Bank, and at the Waterfall Lane trading estate in Cradley Heath.

It has remained under the control of the founding family for nearly a century. H & E Knowles (Lye) Ltd was incorporated in 1962 and was managed by Peter Knowles and Daniel Knowles, the fourth and fifth generation of the family.

But more recently the business had been struggling financially after some large investments it made became too costly.

The company's most recently filed accounts, for the year to the end of January 2015, show that despite a turnover of £6.7 million it made a pre-tax profit of just £54,000.

The business invested heavily in 2015 in premises and machinery, but it was unable to benefit from that investment and has since incurred losses.

The company cash flow was restricted by the increase in finance costs and the directors were ultimately unable to restructure the company's operations and working capital requirements.

Simon Chandler and Scott Bevan of Mazars were appointed joint administrators on November 30 and secured the sale to the new new venture owned by Peter and Daniel Knowles.

Simon Chandler said: "The closure of the business would have resulted in the redundancy of all employees immediately before the Christmas period. The sale of the business preserves and protects those 78 employees."