Insolvent train maintenance firm Railcare Limited has been sold out of administration, securing over 200 jobs.
Railcare entered administration on 31 July [LINK] following a “short-term cash flow crisis”, with administrators appointed from BDO LLP.
The company has been sold to German-owned firm Knorr-Bremse Rail Systems (UK) Limited, ensuring the continuation of Railcare’s sites and over 200 skilled jobs.
Kim Rayment, Ian Gould and Bryan Jackson of BDO were appointed joint administrators to the company.
Rayment, restructuring partner at BDO, said: “The sale of Railcare’s business and assets to Knorr-Bremse will secure a future for the business and jobs.
“Under the conditions of the sale Knorr-Bremse has agreed to pay retained employees their July salaries, which Railcare was unable to provide before it entered administration.
“Current employees will therefore be paid for all work they have done to date.
“We are delighted with this very positive outcome for the business, employees and more broadly for the communities of Wolverton and Springburn, both of which have strong railways heritage.”
On 2 August over 150 job losses – representing around 40% of the company’s total permanent staff – were announced across Railcare’s sites in Springburn, Glasgow and Wolverton in Milton Keynes,
Vince Cable, business secretary, said: “It is good news for the current workforce that the business in both Milton Keynes and Glasgow has been saved.
“I will be seeking an early meeting with Knorr-Bremse to get a better understanding of its long term plans for the business in the UK and what government support may be available to it.”