A historic Dundee company has entered administration due to “unsustainable cashflow issues”.
Administrators have been appointed to Bonar Yarns Limited, a manufacturer of specialist polypropelene carpet backing yarns.
Based at Caldrum Works in St Salvador Street, the firm was acquired from Low & Bonar by a management buyout in 2020.
It has a turnover of more than £6 million and employs 61 staff.
Long history of Dundee business
Ms Elliott said the administration is due to “unsustainable cash flow issues”.
She adds: “Bonar Yarns Limited can trace its history back to the foundation in 1903 of the famous Low & Bonar business that specialised in the manufacture of technical textiles.
“Following a management buyout, the business focused on developing and marketing innovative yarns for a variety of different floor covering and artificial sports turf markets.
“We will continue to trade the business in the short term whilst marketing the business and assets for sale with immediate effect.
“Bonar Yarns is highly regarded for its excellence in carpet yarns innovation.
“We are hopeful that the business will be of interest to a company already operating in the broad coverings market.
“Or it may appeal to an entrepreneur keen to enter the market by acquiring an established brand.”
Currently, no redundancies have been made.
Dundee textile history
Low & Bonar, which was delisted from the London Stock Exchange in May 2020 after a £107 million sale to German firm Freudenberg.
The Dundee management team completed a deal to purchase the Bonar Yarns division.
The most recent accounts, for the year ending November 30 2022, show Bonar Yards sales of £6.8m and a pre-tax profit of £107,000.
Last year, firefighters spent five hours tackling a blaze at Caldrum Works.
Dating from 1872, Caldrum Works was said to be the world’s first fully integrated, single-storey jute works.
It grew to become the second-largest jute mill in Britain in the 1920s, after Camperdown Works, also in Dundee.
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