FIFTY-nine jobs at a historic Dundee business which fell into administration earlier this month have been saved after a US synthetic sports turf specialist stepped in.
Joint administrators Michelle Elliot and Callum Carmichael, partners of FRP Advisory, have sold Dundee-based carpet yarns specialist Bonar Yarns to Newman Yarns, a new business created for the purposes of the acquisition. Newman Yarns was founded by John Newman, owner of Elite Turf USA, a distributor and installer of synthetic sports turf. From its New Jersey headquarters, Elite Turf USA supplies 100%-recyclable synthetic turf to a wide range of sports stadia and venues across the US. Elite Turf USA was previously a customer of Bonar Yarns.
The deal, which is for an undisclosed sum, includes the transfer of the premises, all 59 staff, and all assets on a going-concern basis to Newman Yarns with immediate effect.
It is expected that Bonar Yarns will be retained as the trading name of the new business, the administrators noted.
Commenting on the acquisition, Newman Yarns said: “We are delighted to have agreed a deal with the joint administrators to acquire the assets of Bonar Yarns and look forward to integrating the company into our expanding synthetic turf business. We are also delighted to retain the knowledge and experience of all 59 staff and look forward to welcoming them to Newman Yarns.”
Bonar Yarns went into administration in early April.
Ms Elliot said: “The sale of Bonar Yarns to Newman Yarns in just over two weeks is an excellent outcome for all concerned. It will ensure the ongoing production of Bonar Yarns’ highly regarded range of specialist yarns and continuity of supply to a high-quality customer base. It is particularly rewarding to have secured the transfer of all 59 staff, and we wish Newman Yarns and Elite Turf USA every success with the acquisition and their future plans.”
The Dundee carpet yarns company is based at the Caldrum Works and can trace its roots back to the foundation in 1903 of Low & Bonar. Bonar Yarns was acquired from Low & Bonar by a management buyout team in 2020. It has an annual turnover of around £6.5 million, with exports accounting for the bulk of its sales.
Ms Elliot had said of Bonar Yarns at the time of the administration appointment: “Following a management buyout, the business focused on developing and marketing innovative yarns for a variety of different floor covering and artificial sports turf markets.”
Dundee, from the 18th century, had a burgeoning textiles industry, although much of this is now gone.
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