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Union says historic Dundee factory and 60 jobs unlikely to be saved

Staff are now "resigned" to the fact the business will not be saved, the union representative said.

The Newman Bonar factory at Caldrum Works in St Salvador Street, Dundee. Image: DC Thomson
The Newman Bonar factory at Caldrum Works in St Salvador Street, Dundee. Image: DC Thomson

Any hopes of saving a historic Dundee factory that employed nearly 60 staff appear to be over, according to a union representative.

Newman Bonar, based at Caldrum Works on St Salvador Street, appointed liquidators on Thursday.

However, Unite industrial officer Dougie Orchardson said the prospect of saving the business again are “slim”.

Newman Bonar staff ‘resigned’ to Dundee company’s collapse

Mr Orchardson said staff are now “resigned” to the fact the business will not be saved once more.

He said: “The liquidators are looking for a buyer, but I’m not hopeful.

Dougie Orchardson, Unite industrial officer. Image: Kim Cessford/DC Thomson.

“I think the staff are now resigned to the fact that is it finished.”

Mr Orchardson revealed staff were not paid their October wages before being made redundant.

“The liquidators are looking at selling some of the assets so they can pay the staff,” he said.

“I know they’re trying to work with it.”

‘This has never happened before’

Bonar Yarns, which specialises in polypropylene carpet backing yarns, collapsed into administration in April.

It was then rescued by one of its American customers, John Newman, who formed a new company, Newman Bonar.

But in June, the business was again on the brink of closing due energy costs understood to be in the region of £300,000 a month, but found a way to continue.

Mr Orchardson said he had never encountered a business having so many problems in such a short space of time.

He said: “It has never happened before that I know of.

Employees of Newman Bonar are now “resigned” it won’t be saved, according to the union representative.

“About a month ago they made eight people redundant when they took out one of the lines of machinery because there wasn’t a lot of work.

“Then at the October school holidays people hadn’t been paid at the normal time. The wages eventually went in, but that raised some red flags.”

Mr Orchardson said representatives from Unite will meet with former Newman Bonar staff on Thursday to help with redundancy payments.

Factory closure ‘disappointing for Dundee’

Liquidators Geoff Jacobs and Blair Nimmo from Interpath Advisory have though asked anyone interested in acquiring the business to come forward.

Mr Jacobs said: “This is very disappointing for Dundee to see the closure of a long-standing business.

“Our focus will be on supporting the employees affected and securing and realising the assets of the company.”

The Newman Bonar premises in Dundee.
The Newman Bonar premises in Dundee. Image: Google Maps.

The business’ history stretches back to the foundation of the famous Low & Bonar company that specialised in the manufacture of technical textiles in 1903.

Low & Bonar was delisted from the London Stock Exchange in May 2020 after a £107m sale to German firm Freudenberg.

The Dundee management team completed a deal to purchase the Bonar Yarns division.

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