Jobs under threat after large Dukinfield company enters administration

DOZENS of Tameside workers face an uncertain future after a large company went into administration.

Staff at Tower Mill on Park Road in Dukinfield, find their jobs under threat after Culimeta-Saveguard, parent firm of English Fine Cottons, suffered financial issues.

Many of the around 100 employees were visibly shaken after being given the news on Monday, March 18 that it had called in administrators BDO LLP on Friday, March 15.

Now the search is on to find a buyer – failure to do so would be a huge blow to Tameside’s business sector.

Business restructuring partners Kerry Bailey and Lee Causer have been appointed joint administrators.

In a statement, BDO LLP insisted: “Upon appointment, the business has temporarily ceased trading while the administrators consider all options for the business.

“At present, no redundancies have been made.

“Other entities in the wider Culimeta-Saveguard group, including English Fine Cottons Limited, have not entered administration.”

And Kerry Bailey is hopeful a buyer will be found and jobs will be saved.

She said: “The joint administrators will seek to maximise realisations for creditors in line with their duties.

“We are exploring the possibility of trading all or part of the business as we seek a potential buyer to help safeguard as many jobs as possible.”

In its last available set of accounts, until the end of 2022, Culimeta-Saveguard made a loss after tax of £114,164 after losing £165,610 the year before.

Turnover was down more than £4 million and director Stephen Shaughnessy admitted: “It has been a challenging year.

“The conflicts around the world impacted our business like many others. There were dramatic increases in costs across the board – energy, labour, raw materials and transportation.

“Sales prices were pushed up where possible but on the whole margins were negatively impacted.

“Customers were similarly hit with supply chain issues which reduced demand and turnover. Wherever possible, costs were stripped back.”

The firm made headlines nine years ago with an investment of almost £6 million to bring Tower Mill back into production under its English Fine Cottons brand after the last mills closed in the 1980s, creating more than 100 jobs.

Culimeta-Saveguard said: “Our mission to bring cotton spinning back to its spiritual home in the North West of England has been several years in the making.

“Now we’ve launched English Fine Cottons as the only commercial cotton spinner in the UK.

“We’re breathing new life into a British industry that used to be the envy of the world. Our Victorian former cotton mill is now home to the most modern cotton spinning facility anywhere.

“We’ve created a true ‘Made in Britain’ business, sourcing premium raw materials globally to produce some of the finest quality cotton yarns available.

“Now UK designers and garment manufacturers can access home-spun luxury yarns and truly claim British provenance.”

But that dream appears to be in danger after BDO were called in.

Culimeta-Saveguard, which also has bases in the USA and India, has much of its business in the automotive industry.

One part manufactures acoustic and thermal insulation products for exhaust systems for cars, buses, trucks and for industry, with products like bespoke sleeves, insulation jackets and heat shields.

It also says its textile side makes ‘yarns that provide some of the highest cut and thermal protection possible for personnel protective apparel.’