The director of a 190 year old family owned textile firm in the north east of Scotland has called in the administrators after failing to reach agreement with a major creditor over payment of outstanding debts amounting to almost £120,000.
Joint administrators, Ken Pattullo and Paul Dounis, of Begbies Traynor were appointed on Monday 7th February 2011 and will continue to trade Smiths of Peterhead Ltd while a purchaser is sought. At present limited redundancies are planned from the 50-strong workforce.
Based at Kirkburn Mills since 1850, Smiths of Peterhead Ltd is one of the country’s leading manufacturers of woollen fabrics and knitwear yarns. It supplies leading fashion houses throughout Europe and the rest of the world including brands such as Gucci, Prada and Ralph Lauren. The business has had a presence in Scotland since 1818 and traded as Thomas Smith & Co prior to 2005.
After the sale of the Kirkburn Mills site, the business moved to Kirk Street mill, but was forced to move in 2008 and now has bases at Buchan Braes, Boddam, and Milladen Mill, Mintlaw.
Mr Dounis said: “It would be very sad to see Scotland lose such a historic and prestigious firm as well as the loss of much-needed jobs in the area. We believe that Smiths can be a viable business but has suffered from fluctuations in demand for high quality woollen fabrics during the recession.
“It is unfortunate that the company has been unable to agree repayment terms with the creditors, however we are continuing to trade the business as we are hopeful that a purchaser will be found.”
Ken joined the Glasgow office of Begbies Traynor in 2003, before overseeing the firm's expansion into further offices in Edinburgh, Dundee, Aberdeen and Belfast. He previously worked at KPMG, Ernst & Young and PricewaterhouseCoopers in Scotland. He has a broad range of experience in Corporate Rescue and Recovery, as well as in turnaround and restructuring, corporate and personal insolvency, investigations and IBRs.
Specialisms: Licensed trade, haulage, property investment/development, construction, agriculture engineering/manufacturing.