A clothing manufacturer which aims to revive the textiles industry in the North East has secured a £150,000 investment to support its move into the supermarket sector.
Peterlee-based AMA Group has received investment from the Finance for Business North East Angel Fund, through the fund’s managers, Rivers Capital Partners.
Former Claremont Garments directors David and Julia Price joined with Paul Watts to launch the firm earlier this year which aims to “re-shore” clothes manufacturing to the UK.
The firm estimates it will support more than 100 jobs by the end of 2015, and is already looking into the possibility of a second manufacturing site.
A recent deal with Tesco to supply ladies’ tops is hoped to be the first of many contracts which will be supported by the North East Angel Fund money.
Mr Watts said the funding supplied by the Rivers Capital team would allow AMA to supply affordable garments to consumers that are increasingly interested in the origin of their clothes.
The investment was led by Rivers Capital Partners’ Michael Dickens, who said: “The AMA Group have an immensely experienced team, who know their industry inside out. It is this experience that has allowed them to seize the opportunity that has opened in UK clothes manufacturing.
“More importantly however, they are dedicated and driven, which are the most important factors we look for in potential investees.”
Imogen Holland, corporate partner at law firm Ward Hadaway, provided legal advice to Rivers Capital Partners on the investment.
She said: “We are delighted to have assisted the team at Rivers Capital Partners on this important investment in The AMA Group.
“The company’s management team have pursued their vision to bring back the clothing industry to the North East with great tenacity and determination and I am sure their experience in the sector will prove invaluable to the development of The AMA Group.”
The AMA Group are already attracting interest from several large UK retailers, due to their competitive prices, capacity for smaller batch sizes and shorter delivery times, when compared to overseas suppliers.
The Finance for Business North East Angel Fund is a £7.5m component of the wider, £125m Finance for Business North East Fund.
It is a seed fund which provides investments of between £50,000 and £150,000 in start-up and existing companies.