Partner Article

Liquidation deal saves clothing company

15 jobs have been saved on Tyneside after the future of a South Shields clothing company was secured last week.

Leeannes Limited, which manufactured ladies clothing for a catalogue company, had been started by the Hall family and dated back to 1963. Run by William David Hall and his daughter, Lesley Dixon, it traded profitably until 2006, but then hit problems as it struggled to maintain adequate profit margins.

The company ceased trading on 17 December last year, and all of the staff was subsequently made redundant.

Now, thanks to a deal negotiated by business rescue specialist Begbies Traynor, the plant and machinery belonging to Leeannes Limited has now been sold to its sole customer, catalogue company Country Collection. The new company has also bought the other remaining assets of Leeannes Limited.

Simon Lundy of Begbies Traynor in Newcastle, said: “Like many small businesses, Leeannes Limited initially struggled to find informed advice and assistance when it ran into trouble. We were able to work with the directors to bring about the best possible outcome in the circumstances, enabling this long established Tyneside business to remain in the hands of the family that has put so much work into it over the last 47 years and also saving 15 jobs for local people.

“The new company has negotiated improved terms and volume, giving it a better opportunity to trade through the current tough market conditions.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .