Cosalt chief says take offer or face collapse

Cosalt was founded in 1873 as The Great Grimsby Coal, Salt and Tanning Company. The company expanded in the 20th century, both organically and by buying manufacturing businesses.

David Ross joined Cosalt’s board in 2005 and was appointed chairman in June 2008. He stepped down later that year due to a share scandal, but was re-appointed in October 2009.

The Grimsby-based firm, which employs 361 staff, including 11 in Grimsby, was a £100m turnover business until the recent sale of its marine safety business, a deal which saw it offload 60 per cent of its revenues to pay off debt and avoid administration.

In September, the company reported a £10m pre-tax loss for the 26 weeks to May 2. At the time Mr Ross insisted the sale of the marine division marked a fresh start.

“Together, we will seek to create a long-term solution for the business and deliver sustainable shareholder value,” he said.

Cosalt is still locked in a costly legal battle with former management of its offshore division over alleged fraud.