Efforts by a US businessman to save the historic Bonar Yarns manufacturing business in Dundee have failed with the majority of staff at the company now out of a job.
Blair Nimmo and Geoff Jacobs from Interpath Advisory have been appointed joint provisional liquidators of Newman Bonar, a new business created to acquire Bonar Yarns in April of this year after it first fell into administration. Newman Bonar was founded by John Newman, the owner of Elite Turf USA, a New Jersey-based distributor of synthetic sports turf.
READ MORE: Jobs saved as Bonar Yarns bought by Elite Turf USA owner
Bonar Yarns was based at the Caldrum Works and can trace its roots back to the foundation in 1903 of Low & Bonar. It was acquired from Low & Bonar by a management buyout team in 2020 and had an annual turnover of around £6.5 million before going into administration in April, with exports accounting for the bulk of sales.
Under its latest owner the business focused on producing materials for sports pitches. Interpath Advisory said Mr Newman provided "significant funding" to keep the business operational while seeking formal contracts of scale with key customers and procuring new supply contracts.
Despite these efforts, Newman Bonar faced intense challenges with high inflation driving up costs, particularly energy costs. It also had significant ongoing overhead costs and was unable to re-establish contracts with key customers at a sufficient level to make the business viable and reduce the ongoing funding required.
Mr Newman said winding up the business was a difficult decision and "a disappointing outcome for everyone concerned". He also thanked staff for their support and dedication to working in recent months to try and secure a future for the business.
Mr Nimmo of Interpath Advisory said: “This has been a well-known Dundee business for many years with a strong global reach and it is extremely disappointing for the company’s many stakeholders, funders and employees that it could not continue to trade viably.”
READ MORE: Carpets specialist Bonar Yarns in administration
The majority of the company’s employees have formally been made redundant with a small number retained by the joint provisional liquidators for a short period to assist with the orderly winding up of the business.
Mr Jacobs, managing director at Interpath Advisory, said: “This is indeed very disappointing for Dundee City to see the closure of a long-standing business.
"Our focus will be on supporting the employees affected, and securing and realising the assets of the company which primarily comprise its name, customer base, stock and plant and machinery. Clearly it would be great to see the business continue in some manner and therefore, if any party has an interest in acquiring the business and/or its assets, they should contact the joint provisional liquidators as soon as possible.”
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