400 Metalrax jobs saved in buy-out

Workers had been left fearing for their jobs after the group suspended its shares yesterday and called in administrators

But, within hours, a series of deals were sealed that secured the jobs of a total of 387 people across the manufacturing group.

The Alvechurch-based group made kitchenware as well as carrying out specialist engineering work for clients such as JCB, Caterpillar and Jaguar Land Rover.

However it had been brought to the brink by a funding crisis; falling sales meant it wasn't bringing in enough money to keep the business running and attempts to secure additional funding had been unsuccessful. It had also suffered after the loss of a major contract to supply bakeware to the Morrisons supermarket chain last summer.

Metalrax bosses said they had no choice but to call in administrators KPMG yesterday for part of the group.

But the housewares arm, including 37 people working at the Samuel Groves plant in Oldbury, was not included the administration.

However, that has now been bought by a new company called Cable Capital Partners.

And in a separate deal the main bulk of the Metalrax business, including 57 people at Cooper Coated Coil in Wednesfield and 77 in Redditch at Weston Body Hardware, has been bought by a group of companies headed by Birmingham engineering firm Bowman Birmingham.

This group will trade as Arc Specialist Engineering, backed by specialist private investors.

Will Wright, one of the administrators from KPMG said: "Being able to sell the business and assets, together with shares in solvent businesses within the group, has been a great solution to securing a future for the business and more importantly just under 400 jobs."