Fri, 22 Dec 2023 | BUSINESS SALE
Farrellys Metal Polishers, a long-established metal finishing business based in the Black Country, has been acquired out of administration. The company, which operates from a site at Newman Park, Wednesbury, fell into administration last month after being affected by difficult trading conditions.
The firm is among the largest of its kind in Europe and provides metal polishing services for customers including Jaguar Princess Yachts, BMW and Louis Vuitton. Despite its high-profile status in the market, the company has been affected by adverse trading conditions, including rising energy bills, the ongoing impact of Brexit and general economic uncertainty, which made managing the business’ debts more complicated.
The company fell into administration on November 21, with Craig Povey and Richard Toone of Begbies Traynor appointed as joint administrators. The joint administrators subsequently completed a sale of the business to FMP (Midlands) on December 15 in a deal that secured 28 skilled jobs.
Joint administrator Craig Povey, a partner at Begbies Traynor, West Midlands, commented: “This sale has not only secured the employment of a skilled workforce but will also contribute to the stability of the Black Country steel industry supply chain, enabling the business to support the work being undertaken by Marcegaglia in Oldbury and realise the ambition of the UK Steel Charter.”
“This positive outcome underlines the importance of seeking advice as early as possible, which has seen a good business navigate its way out of a very difficult set of circumstances and emerge stronger.”
Povey added that the wider sector was “operating under pressure with intense competition from overseas”.
FMP (Midlands) Director Steven Finnegan, a former director at Farrellys Metal Polishers, said that, despite the company facing difficult trading conditions, it had managed to turn the situation around “by taking decisive action”, with the support of Begbies Traynor and Angel Accounting.
Finnegan continued: “We are now looking forward to a strong 2024 where we will be increasing our workforce. We would like to thank all of the companies in the steel industry supply chain who have provided extensive help and assistance during this time, as well as our amazing long-standing workforce who have supported the business every step of the way.”
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