Dozens of Dundee jobs saved as textile firm bought from administration

The business entered administration earlier this month due to “unsustainable cashflow issues".

By Gavin Harper

April 20 2023, 10:38am

The Bonar Yarns factory at Caldrum Works in St Salvador Street, Dundee. Image: Google Maps.

A Dundee textile firm has been bought from administration, saving more than 50 jobs.

Bonar Yarns Limited went into administration earlier this month, citing “unsustainable cashflow issues”.

The business has been sold to Newman Yarns Limited, a new business created for the purposes of the acquisition.

The deal, which is for an undisclosed sum, includes the transfer of the premises and all 59 staff.

All assets on a going-concern basis will also transfer to Newman Yarns with immediate effect.

It is expected that Bonar Yarns will be retained as the trading name of the new business.

New owners of Dundee textile firm

Newman Yarns was founded by John Newman, owner of Elite Turf USA, a leading distributor and installer of synthetic sports turf.

From its New Jersey headquarters, Elite Turf USA supplies 100% recyclable synthetic turf to a wide range of sports venues across the United States.

Elite Turf USA was previously a customer of Bonar Yarns.

Bonar Yarns machinery. Image: FRP Advisory

Mr Newman said: “We are delighted to have agreed a deal with the administrators to acquire the assets of Bonar Yarns.

“We look forward to integrating the company into our expanding synthetic turf business.

“We’re also delighted to retain the knowledge and experience of all 59 staff and look forward to welcoming them to Newman Yarns.”

‘Excellent outcome’ as 59 jobs saved

The firm was acquired from Low & Bonar by a management buyout in 2020. It is based at Caldrum Works in St Salvador Street.

Accounts for the year to November 30 2022, show Bonar Yarns sales of £6.8m. It also made a pre-tax profit of £107,000.

Joint administrator Michelle Elliot, partner with FRP Advisory, said: “The sale of Bonar Yarns to Newman Yarns in just over two weeks is an excellent outcome for all concerned.

Dundee textile firm Bonar Yarns is located in Salvador Street. — Bonar Yarns in St Salvador Street.

“It will ensure the ongoing production of Bonar Yarns’ highly regarded range of specialist yarns and continuity of supply to a high-quality customer base.

“It is particularly rewarding to have secured the transfer of all 59 staff.

“We wish Newman Yarns and Elite Turf USA every success with the acquisition and their future plans.”

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.