Partner Article

111 jobs saved at North Yorkshire manufacturers after buyout

All 111 jobs were saved at North Yorkshire’s Micro-Metalsmiths Ltd after adminstrators were called in.

Hunter Kelly and Charles King of EY’s Restructuring team in Yorkshire were appointed joint administrators of Kirkbymoorside-based Micro-Metalsmiths Limited on 2 May 2014.

On appointment, the administrators completed the sale of the Company and certain assets to Newcastle-Upon-Tyne’s Sylatech Limited, in a deal which saved all 81 jobs at Micro-Metalsmiths.

The administrators also sold the entire share capital of MM Microwave Limited, which was owned by Micro-Metalsmiths, to Sylatech – securing the future of MM Microwave’s 30-strong workforce.

Hunter Kelly,joint administrator and restructuring partner at EY, said: “Due to the combined effect of challenging trading conditions and a large pension scheme deficit, Micro-Metalsmiths’ was effectively running out of cash. As result, the directors commenced a marketing process to identify potential buyers for the business.

“Shortly after the period of marketing, the Company became unable to meet its debts and, as a result, entered administration. We were able to secure a going concern sale to Sylatech which has safeguarded the future of all 111 employees across Micro-Metalsmiths and MM Microwave.

“A going concern sale represents a better outcome for Micro-Metalsmiths’ creditors than the alternative, which would have been immediate closure.”

This was posted in Bdaily's Members' News section by Clare Burnett .