Sheffield insolvency company saves 21 jobs as manufacturing firm goes into administration
A Sheffield insolvency specialist has helped save all 21 jobs at Chesterfield manufacturing company Flaretec Alloys and Equipment Limited after it was bought out of administration.
Wilson Field was appointed as administrators to the 35-year-old business, which manufactures plant for oil, gas and process industries, on December 13 last year after the company suffered cashflow problems and creditor pressure.
Six weeks later Flaretec has been acquired by Hertfordshire-based Hephaestus Holdings Ltd and its new subsidiary Flaretec Alloys and Equipment (UK) Ltd.
Hephaestus, headed by Chris Heminway, is an investment group specialising in the turnaround of struggling industrial manufacturing businesses.
The total value of the deal is undisclosed but includes the business and the assets of the company based on Holmewood Industrial Estate in Chesterfield.
Wilson Field worked closely with advisors from the Sheffield office of hlw Keeble Hawson to find a buyer and secure the jobs. Some of the employees have been with the company for more than 20 year’s service.
Gareth Kinneavy, senior case administrator at Wilson Field in Sheffield, said: “This was an unusual case as we were appointed as administrators by unsecured creditors rather than a bank or directors.
“Upon appointment, we reviewed the company’s operational position, negotiated with key customers to complete ongoing contracts and marketed the company for sale as a going concern.
“This company now has promising future and its employees can look forward to new horizons.”
The company which specialises in process pipework fabrications, pressure vessels and fired and unfired heaters, works in diverse industries including oil and gas, petrochemical, pharmaceutical, marine and food processing.
Insolvency lawyer Neil Kelly, an associate at hlw Keeble Hawson, commented: “It is testament to the effective teamwork between all parties that this deal was turned around so quickly and gratifying that such an established local manufacturer can continue to trade.”
Flaretec was originally founded in 1979 and established in 1981 and offered a design to build facility complete with engineering and project management.
Its safety and environmental policies meet both national and international requirements including the American Society of Mechanical Engineers (ASME) and National Board Stamp allowing the design and manufacture of pressure vessels and heaters for distribution worldwide.
This was posted in Bdaily's Members' News section by Clare Burnett .
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