A deal has been struck to safeguard the future of a woven labels and accessories manufacturer after it entered administration.
Coventry-based Cash’s (UK) Limited entered administration along with its parent company, Composite Materials Technology Limited in late January as a result of cash flow problems from “substantial deficit in the group’s defined benefit pension scheme.”
Joint administrators Will Wright and Mark Orton of KPMG, appointed on 29 January, oversaw the sale of the business and assets as a going concern to Cash’s Apparel Solutions Limited, a new company led by members of the former management team, supported by The Jointak Group, a former key supplier to Cash’s based in Hong Kong.
Wright said: “From day one of our appointment, we were delighted with the interest and affection shown for the Cash’s business. The ongoing support of customers and suppliers has been essential in securing a sale in such a short timescale.”
All remaining 11 employees will transfer to the new company, and the company aims to recommence UK production as soon possible. 47 staff were made redundant as a result of the company entering administration.
Gary Powles, managing director of Cash’s Apparel Solutions (UK) Ltd, said: “We are absolutely delighted to have been able to secure this deal, which will see the famous Cash’s name continue to trade from its home in Coventry.
“There’s no doubt it’s been a difficult few weeks, but we’re keen to start production on site as soon as possible, and are also hoping to recruit workers to the business over the coming weeks.”