UK: Workwear supplier Cosalt calls in administrators
Safety and workwear supplier Cosalt has called in the administrators after facing severe financial difficulties.
The Grimsby-based company employs 58 people at its workwear business and 260 workers in its offshore division.
Administrators at PricewaterhouseCoopers (PwC) said negotiations are ongoing for the sale of the company's workwear business, but added that it will continue to trade as normal.
The workwear unit, which supplies apparel to emergency services and industrial users, operates primarily from Stockport, with an operation in Barnsley and two distribution centres in the South East.
"The workwear business is financially self sufficient and it will continue to trade as normal for the foreseeable future," said David Kelly, joint administrator and partner at PwC. "We are confident that a sale of this business as a going concern will be achieved in the near future."
Meanwhile, PwC said it has sold Cosalt's Offshore business, which specialises in the refurbishment of lifting equipment, manufacturing ropes as well as the sale and maintenance of lifeboats, to Dunwilco. The 240 employees in the UK and 25 in Norway will not be affected by the announcement.
"The last few days have seen an intensive period of activity as we worked with the group to explore the options available to them. We feel that this represents the best outcome for the Offshore business and will ensure that these companies have a more secure future," Kelly added.
"Cosalt Plc has been facing severe difficulties meeting its financial obligations, and this was beginning to impact on its trading subsidiaries.
"Having run out of alternative options, it sought the protection of administration and we immediately completed the sales process which had been running for the past few months."
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