Former Carpets International Goes Into Receivershi
Down, Northern Ireland, December 27-- Donaghadee Carpets has confirmed that the company, which was established just a year ago, will close with the loss of 63 jobs, according to the Belfast-based News Letter.
Donaghadees, which previously operated as Carpets International, has gone into receivership following a decision by directors to cease trading. The company employs 47 in Donaghadee and a further 16 in Bradford.
Garth Calow, a partner in the Business Recovery Services department of PricewaterhouseCoopers in Belfast who has been appointed Joint Administrative Receiver of Donaghadee Carpets said: "In the face of difficult trading conditions, the directors of Donaghadee Carpets have been unable to continue trading and have requested this appointment to deal with the affairs of the company. Donaghadee Carpets has ceased trading and we are currently endeavouring to establish the company's financial situation which will ultimately determine the position of creditors.
"This is a particularly difficult and distressing situation for the workforce and our priority is to ensure that the entitlements of employees are dealt with immediately." The company was established in December 2003 by former managers of Carpets International (UK) Ltd following a management buyout.
Carpets International went into receivership in August 2003 with the loss of 289 jobs in Donaghadee and 140 in Killinchy.
However, an MBO to save the Donaghadee factory was agreed with the receivers, PricewaterhouseCoopers, four months after the plant went into receivership.
Central to the deal was the purchase of the Donaghadee factory by a local property consortium, Mar Properties.
Under the terms, PwC sold the Donaghadee and Killinchy factories to Mar Properties which then leased the Donaghadee plant back to the MBO team.
When the new company Donaghadee Carpets was established, there were plans to create 116 new jobs, but just under half of these materialized. It also secured significant funding including backing from the Province's economic development agency Invest NI, Venture Capital company Enterprise Equity and Ulster Bank to acquire the assets of the factory.
At the time Invest NI said it was important to retain carpet manufacturing on the Donaghadee site and offered £2 million in equity and financial assistance to the new company.
