More than 130 jobs have been saved at a North Wales firm after the business and assets were sold as a going concern.
Dean Watson and Gary Lee of Begbies Traynor were appointed as Joint Administrators of UK Fire Doors Limited, a designer and manufacturer of performance doorsets, after it ran into financial difficulty earlier in 2018.
The business was launched in 2013 and has operations in North Wales, East Midlands and Devon. Recent projects include supplying and fitting fire and safety doors to the Royal Engineers at a former RAF base in the Falklands Islands as well as new-build property developments in the UK in the public and private sector.
More than 130 jobs have now been secured after the business and assets of the company were sold in a pre-pack deal following the appointment of Begbies Traynor.
Dean Watson, partner at Begbies Traynor in the North West, said:
“We are delighted to have secured a future for the business and employees of UK Fire Doors. A number of factors contributed to the financial situation of the company and at one stage we feared that the business was going to cease trading. This would have resulted in the loss of many jobs.
“This was avoided after we identified a number of parties who were interested in continuing the business. Ultimately, following negotiations the business and assets were sold to a company controlled by a UK based private equity investor which has resulted in a significantly better result for creditors than if the business was closed down.
“The new company is working to build on the heritage and expertise in the North Wales region, with a view to returning the business to profitable growth.
“The newco purchased and is honouring all currently placed orders by customers. The Newco is well capitalised, has not lost a day of production and the team are all working to make the business a success.”
Firedoors is the country’s leading manufacturer of doors and doorsets for the commercial construction market. Third party-certified solutions are produced for the health, education, other commercial and accommodation sectors, encompassing fire, acoustic, security and extended performance criteria.
Firedoors has one of the largest capacities of all UK manufacturers and distributes to projects across the country.
Dean is a Qualified Accountant (FCCA) and Licensed Insolvency Practitioner with over 25 years experience in the accounting profession. Dean joined Begbies Traynor in 1999 after spending 10 years working in general audit and accountancy practice. Based in the Manchester and Preston offices, he has worked on a variety of assignments including formal insolvency appointments and providing advice to various stakeholders in situations where financial distress is present.
Dean has gained significant experience in the Legal Sector after dealing with a number of distressed Legal and other professional services firms in recent years and jointly heads up the North West Professional Services team.
As well as business reviews and formal insolvency appointments, practical solutions and hands on turnaround assignments have also been one of Dean’s main focuses. This has generally been in support of high street clearing banks and other financial institutions.