Management buyout saves Kidderminster carpet firm

A Midlands carpet firm is facing a more secure future after successfully being bought out by its management.

The move by the management of Carpets of Kidderminster means the safeguarding of the 58 remaining jobs at the company. It follows the axing of 62 jobs, however, when the company first went into administration in August.

It is understood the buyout was struck after a major reorganisation of the business, which was founded in 1934. The agreement was reached between the company and administrator, Andrew Fletcher of Sanderlings LLP. The cost of the deal was not revealed.

The new managing director, Dewi Thomas – who is also now a shareholder in the buyout company – said there was tremendous relief that the company had emerged from such difficult times with a positive outcome.

"I am delighted we have secured a future for the business," he said. "The administration has allowed us to renegotiate unprofitable contracts and put the business on a sounder footing."

He said the deal enabled them to maintain their position as one of the few remaining specialist carpet manufacturing businesses left in the UK. That status, he said, would prove very beneficial to their existing customers, suppliers and employees.

Local MP, Mark Garnier, said he was delighted at the efforts that had been made on all sides: "This management buyout secures a sound financial basis for the company to move forward."

Share this article

Latest Businesses for Sale

View more businesses for sale