MBO saves sheet metal company
From left, John Leach with Mike Jenkins of Begbies Traynor and Ryan Morgan and Andrew Best of HSR Law
The future of Gainsborough, Lincs, sheet metalworking and stainless steel fabrication firm, Bland Burgess & Hethershaw, has been secured in a management buyout by former director John Leach.
The company was placed in administration in April and the deal, which saves 11 jobs, was negotiated by business rescue, recovery and restructuring specialist, Begbies Traynor.
The business had been trading for over 50 years as sheet metal workers and specialist welders and had a wide customer base, historically providing services to the engineering industry, milling and grain merchants and packaging machinery manufacturers. With a million pound turnover, it developed expertise working with a variety of metals in the manufacture and installation of products including hoppers, conveyors, access platforms and stairways, in addition to light to medium fabrications and structural steel work.
The company traded profitably until 2009, but then hit financial problems as a result of the recession with the situation worsened by poor trading during last winter due to adverse weather conditions. Despite efforts to reduce overheads, the company was placed in administration with David Horner and Rob Sadler of Begbies Traynor’s Doncaster office appointed as Joint Administrators.
The Administrators traded the business for three months whilst it was marketed. A deal was subsequently agreed for the sale of the business and assets to BBH Prometals Limited, a company owned by John Leach.
“The manufacturing and sheet fabrications industries were the first to feel the impact of the recession and despite the best efforts of the management, Bland Burgess & Hethershaw Limited proved unable to weather the downturn in trade,” explained Mike Jenkins, manager at Begbies Traynor’s Doncaster office who dealt with the sale. “We were confident that this well-established business had a future and, therefore, continued to trade it while we sought a buyer.
“With his vast knowledge of the business, having spent almost 20 years working first as general manager and latterly as director, we believe Mr Leach is the right person to take the business forward.”
John Leach comments: “Having invested so many years here in the business, it is fantastic that we have been able to work with Begbies Traynor to preserve it along with the jobs of the majority of the loyal workforce. Without their skills and experience, there would have been no business to secure and it is a mark of their reliability that the vast majority of our existing customers have entrusted us with their work and their support. I would like to thank them all for their confidence in us and for their continued support.
“We are confident that the new company will be able to trade through the current tough market conditions.”
Images for this article - click to enlarge
Unless otherwise stated, all images copyright © Mercator Media 2012. This does not exclude the owner's assertion of copyright over the material.
