Jobs saved after German company buys collapsed rail firm

The firm went into administration earlier this month with the loss of 33 jobs at Springburn, Glasgow, and 118 at Wolverton, near Milton Keynes.

Administrators from BDO said the sale of the business and assets to Knorr-Bremse Rail Systems (UK) Ltd had been completed.

The deal will ensure the continuation of works at Railcare’s sites and preserve all 202 skilled jobs.

BDO business restructuring partner Kim Rayment said: “The sale of Railcare’s business and assets to Knorr-Bremse will secure a future for the business and jobs. Under the conditions of the sale Knorr-Bremse has agreed to pay retained employees their July salaries, which Railcare was unable to provide before it entered administration.

“Current employees will therefore be paid for all work they have done to date.

“We are delighted with this very positive outcome for the business, employees and more broadly for the communities of Wolverton and Springburn.”

Bob Crow, general secretary of the Rail Maritime and Transport union, said: “RMT welcomes any concrete arrangement that will save the jobs and capacity at Railcare’s depots and we will be examining the detail of this takeover to ensure that all jobs and ongoing commitments are protected.

“RMT has also not forgotten the savage treatment handed out to those Railcare staff already made redundant and we will be pressing for arrangements to ensure that all workers caught in this corporate collapse are employed and protected long into the future.”

Business Secretary Vince Cable said: “It is good news for the current workforce that the business in both Milton Keynes and Glasgow has been saved.”