A long-established West Midlands, UK, metal finishing business which lists Princess Yachts and Sunseeker as customers has been sold out of administration.
The deal safeguards the jobs of 28 skilled workers.
Craig Povey and Richard Toone of Begbies Traynor were appointed as joint administrators of Farrellys Metal Polishers Limited on 21 November 2023, and the sale to FMP (Midlands) Limited completed on 15 December.
The company is said to be one of the largest independent non-ferrous metal and tube polisher of its kind in Europe but had been affected by the difficult trading conditions of the past few years, including the impact of Brexit, rising energy bills, and the general climate of uncertainty, which made it more difficult to manage debt within the business.
“This sale has not only secured the employment of a skilled workforce but will also contribute to the stability of the Black Country steel industry supply chain,” said Craig Povey, joint administrator and partner at Begbies Traynor.
“Undoubtedly this is a sector that is operating under pressure with intense competition from overseas, which makes it even more significant to safeguard this highly skilled workforce in the industrial heartland of the West Midlands.”
The sale of the business will enable it to continue to support the work being carried out by precision tube manufacturer Marcegaglia UK, part of the worldwide industrial group.
Steven Finnegan, director at FMP (Midlands) Limited, said: “Trading conditions were made very difficult for the company, but by taking decisive action it was possible to turn the situation around with the support of Angel Accounting and Begbies Traynor. We are now looking forward to a strong 2024 where we will be increasing our workforce.”
He added: “We would like to thank all of the companies in the steel industry supply chain who have provided extensive help and assistance during this time, as well as our amazing long-standing workforce who have supported the business every step of the way.”
Farrellys Metal Polishers Limited was incorporated in October 2002.