U.K. Carpets Rescue Deal Is Sealed

Donaghadee, UK, Dec. 29-- More than 100 jobs are to be created in Co Down in the New Year thanks to a rescue plan at a stricken carpets factory, it emerged today, According to the Belfast Telegraph. A management buy-out deal has been finally agreed at Carpets International in Donaghadee, which closed down in November. A key component of the agreement involves the purchase by a property consortium for around £4m of the CI plants at Donaghadee and Killinchy. The consortium comprises MAR Properties of Donaghadee, which is headed by Adam Armstrong, and Kilultagh Properties, which is led by Frank Boyd. The consortium will lease the Donaghadee plant to the MBO team to enable production to resume at the CI plant. But there is no reprieve for the CI yarn spinning plant at Killinchy, which closed in September. The plant there will be demolished to make way for a housing development. Armstrong said today: "This is a joint deal between MAR, Kilultagh, and the MBO team which should lead to 116 jobs being created at Donaghadee. "We are leasing the plant to the MBO team for a 15-year term and we think their business plan stacks up well. "We wish them well in their efforts to get the business up and running again." The MBO team is expected to start advertising for applicants early in the New Year. Employees who lost their jobs are expected to apply for the positions. Administrative receiver Garth Calow from PricewaterhouseCoopers business recovery services in Belfast, confirmed that after prolonged negotiations, assets of the business had been secured by a team including former CI managers. He said: "Since our appointment in August we have endeavoured to find a buyer for the CI business and or its assets. "We are delighted that we have been able to facilitate a sale to this management team and to provide an opportunity to restart production and toe retain a carpet manufacturing capacity on the Donaghadee site." There was no immediate comment from Invest NI, which has been closely involved in the negotiations.