67 jobs saved as West Bromwich castor maker is bought out
A West Bromwich manufacturer has been bought out of administration saving the remaining 67 jobs but its premises are to be sold off.
Colson Castors at Hill Top, which import and manufactures castors for the retail, medical and industrial market, went into administration on December 29 putting 80 jobs at risk at West Bromwich, but it has now been bought by its parent United States group Colson Group Holdings through new subsidiary Colson UK.
Colson UK will manage the business at its current location while it arranges to relocate the assets purchased to a new site in the area. Included in the assets were all of the Colson Castors' brands. All remaining 67 employees were transferred to the purchaser.
"We are pleased the Colson Group bid was successful and look forward to transitioning the business to our new company," said Tom Blashill, Colson Group chief executive.
"Our experienced team in the UK is committed to providing outstanding products and support to our customers in a structure that will support their future success," he added.
Grant Thornton acted as administrators for Colson Castors and joint administrator Eddie Williams said: "I am very pleased to conclude the sale of the majority of the assets to Colson UK, which delivers the best outcome for the company's creditors and stakeholders."
The administrators are now marketing the company's freehold property and residual assets, to maximise the return to creditors.
"We are looking forward to growing our business and servicing our customers," said general manager and finance director of Colson UK, John Smithies.
"Our core team remains in place to continue to provide the high level of customer service our customers expect," he added,
"The UK plays an integral role in our global customer supply chain process," said Colson UK sourcing and operations director Jayne Simonds.
"Our highly qualified supply chain team will work to ensure there are no interruptions in product delivery, as our new company allows us to continue to leverage Colson Group's supply chain strengths," she added.
The business, which had annual turnover of £12 million, had been loss making for a number of years with significant funding being provided by the Colson Group, the largest manufacturer and supplier of castors and wheel products in the world and employing 1,600.
Following a review, the group was no longer in a position to continue to fund these losses and without access to funding the directors of the companies had no alternative other than to go into administration.
