Bathroom factory acquired out of administration

A Cramlington-based bathroom factory has been rescued from administration by a national building company, saving 90 jobs in the process.

Following its administration five weeks ago, EJ Badekabiner (EJB) has been acquired by Continental Shelf 515, an arm of Middlesex-based Galliford Try, for an undisclosed sum. EJ Badekabiner filed losses of £841k and £921k in its last two sets of submitted accounts to April 2008 and April 2009 respectively.

Danish group EJ Badekabiner suffered severe cashflow issues, with millions of pounds worth of debt prior to its administration. Its sale by PricewaterhouseCoopers has saved 91 jobs and the new owners say they plan to create even more jobs opportunities over the coming months at the factory, which is the firm's only UK base.

The factory specialises in manufacturing pre-engineered bathroom pods. Its current project is supplying bathrooms to the London Olympic Village site.

Sean Hamilton, director and head of business recovery at PricewaterhouseCoopers in Newcastle, said, “We are delighted to have completed the sale of the business and assets of EJB, including the transfer of 91 employees at the production facility in Cramlington.”

James Armitage, Galliford Try Construction South's managing director said that, although the purchase of the EJB site was 'moving into new territory,' its products fit well with Galliford's 'wider construction operations.'

“It is a tough market out there but we are hopeful that we can make it work,” he added. Galliford Try Construction South Ltd recorded sales of £530m and pre-tax profits of £4.8m in its last return to 30 June 2009.

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