A Tanfield-based engineering firm has been sold out of administration, saving the jobs of 70% of its workforce.
Tanfield Engineering Systems Ltd posted significant losses in the previous financial year, resulting in the company entering administration in November 2013 by its directors.
Having been appointed as administrators to Tanfield, Linda Farish led the Recovery & Insolvency team at RMT Accountants & Business Advisors.
The administrators intended to trade the business to protect its substantial debtor book, market the business and sell it as a going concern.
A deal was struck with specialist heavy transport industry manufacturer Tinsley Special Projects Ltd, which had premises in Eaglescliffe and Peterlee.
Of the workforce of 97, 68 jobs have been retained as part of the sale to Tinsley.
A spokesperson for Tinsley Special Projects said: “The synergies that lay within Tanfield Engineering Systems made it an excellent fit with our existing portfolio of operations, and this strategic acquisition has developed an even stronger overall client offering and indeed client base.
“The RMT team were very proactive in ensuring that the Tanfield business remained a viable going concern, and their support in reaching a successful conclusion to this process has been invaluable.”
Farish, head of Recovery & Insolvency at RMT, said: “Continuing to trade Tanfield Engineering Systems and fulfilling existing orders while we looked for potential buyers was absolutely essential in order to protect the company’s debtor book and increase returns to creditors, and the staff have made a crucial contribution to ensuring we could achieve this goal.
“Tinsley Special Projects offered the best option for the transaction, and we’re very pleased that an agreement has been reached with them.
“Being able to retain more than two-thirds of the existing Tanfield Engineering Systems workforce is a terrific outcome to a very difficult situation, and we hope that the business is now able to move forward to renewed success in the New Year.”