Bradford, U.K., Oct. 6--The Welsh Assembly Government is backing a local management buy-out to save a South Wales Valleys manufacturing plant--and the jobs of its 320-strong workforce, according to the Western Mail.
Staff at the Crumlin factory of Carpets International have faced an uncertain future ever since the Yorkshire-based company went into receivership on August 20.
But senior management at the facility is now moving ahead with efforts to secure a buy-out from the receiver PricewaterhouseCoopers.
And after preliminary meetings with Assembly officials, Economic Development Minister Andrew Davies has said he would welcome an application for grant aid assistance from the management team.
Following advice from both the Department of Trade and Industry and legal experts regarding whether public sector assistance would be permitted under European Union synthetic fibre restrictions, Assembly officials are now to meet again with the management buy-out (MBO) team to discuss the business case for possible grant assistance.
Davies said, "I would like to see a new business going forward from the receivership of Carpets International.
"Proactive action is being taken by the Assembly Government and my officials have offered to discuss any application for financial assistance and to give all appropriate guidance."
The MBO team is understood to be in the process of trying to put together a finance package for acquiring the Crumlin operation which they hope to be in a position to share with the Assembly Government before the end of this week.
Any grant offer that may be made would be for an amount determined by Mr Davies. He is always advised in such cases by the Welsh Industrial Development Advisory Board.
The board is scheduled to meet tomorrow, and then on November 4, but if an urgent recommendation is needed they could convene earlier.
Carpets International has blamed heavy competition from imports, and the growing popularity of laminated floorings for its move into receivership.
Headquartered in Bradford, the company employed 1,200 people across the UK. It was Britain's largest carpet manufacturer, and had an annual turnover of £100m.
Most of the main building supplies and DIY stores stocked its products, which included brand names such as Kossett, Wilton Royal and Abingdon.
In addition to its Bradford headquarters and the factory in Crumlin, Carpets International had facilities in Hartlepool, Hull, and Northern Ireland.
