Dozens of North East jobs have been saved after a buyer was found for one of the Tanfield Group plc’s divisions.
Tanfield Engineering Systems Ltd was placed into administration in November last year by its directors after posting substantial losses in the previous financial year.
The Recovery & Insolvency team at RMT Accountants & Business Advisors was appointed as administrators for the Tanfield-based business with a view to trading the business to protect its substantial debtor book, marketing it and attempting to sell it as a going concern.
Interest was shown by a number of potential buyers, and after the suitability of each interested party was assessed, a deal was agreed with specialist heavy transport industry manufacturer Tinsley Special Projects Ltd, which has premises in Eaglescliffe and Peterlee in County Durham.
Sixty-eight jobs have been retained from the 97-strong Tanfield Engineering Systems workforce as part of the sale to Tinsley.
A spokesperson for Tinsley Special Projects said: “The synergies that lay within Tanfield Engineering Systems made it an excellent fit with our existing portfolio of operations, and this strategic acquisition has developed an even stronger overall client offering and indeed client base.
“The RMT team were very proactive in ensuring that the Tanfield business remained a viable going concern, and their support in reaching a successful conclusion to this process has been invaluable.”
Linda Farish, head of recovery & insolvency at RMT, added: “Continuing to trade Tanfield Engineering Systems and fulfilling existing orders while we looked for potential buyers was absolutely essential in order to protect the Company’s debtor book and increase returns to creditors, and the staff have made a crucial contribution to ensuring we could achieve this goal.
“We had a lot of interest in taking on the business from a number of different parties, and conducted visits to Tanfield’s premises with several of them to help identify the most appropriate buyer.
“Tinsley Special Projects offered the best option for the transaction, and we’re very pleased that an agreement has been reached with them.
“Being able to retain more than two-thirds of the existing Tanfield Engineering Systems workforce is a terrific outcome to a very difficult situation, and we hope that the business is now able to move forward to renewed success in the New Year.”
RMT provides a range of financial and business advisory services through its specialist tax, recovery & insolvency, corporate finance and medical & healthcare divisions.