NINETY four staff have been made redundant at a Yorkshire-based specialist yarn spinner which has suffered from cash flow problems
Westwood Yarns Ltd, which spins specialist yarns at the Washpit Mills in Holmfirth, West Yorkshire, primarily for its largest customer, Victoria Carpets, appointed administrators Paul Flint and David Costley-Wood of KPMG LLP on December 23 after experiencing cash flow difficulties.
A statement issued today said: “The joint administrators have retained 38 staff and are continuing to trade the business in a limited capacity to fulfil a number of orders that are currently in progress whilst they continue to look for a buyer for the business and assets.
“The joint administrators could no longer trade the business at full capacity given the current order book, and therefore the remaining 94 employees were informed of their redundancy on Tuesday, effective from close of business on Monday. All employees will be paid up-to-date to Monday, including for the Christmas and New Year period.
“The retained employees will continue production to fulfil outstanding orders where possible and assist the administrators in their continuing duties. Any customers with outstanding orders wishing to have their orders finished, which are yet to have had dialogue with the joint administrators, are encouraged to make contact as soon as possible.”
Paul Flint, associate partner at KPMG and joint administrator, said: “We are working with the employees to assist them through this difficult time. We will be providing guidance to those affected in making claims to the Redundancy Payments Office and have been liaising with the local job centre for their help.
“The business, which we will continue to run in a limited capacity for a short period, has generated interest from a number of parties for a potential sale as a going concern. We would urge any further interested parties to come forward for the business and its assets, which include the freehold for the 160,000 sq ft site, as well as plant and machinery.”
Business sale and asset enquiries should be directed to John Noon or Hollie Watson of KPMG on 0161 246 4801 and 0161 246 4792 respectively.