Administrations working at a doomed Doncaster manufacturing company have secured a crucial lifeline deal to sell divisions of the business and initially create 14 new jobs.
Following fears that all 98 jobs would be lost at Balby-based Norking Aluminium Limited, administrators from Sheffield-based Wilson Field, have sold elements of the business under new management teams.
Three new independent companies have now been formed, two of which are from trading arms of Norking which held sole UK distribution rights.
APCO produce a signage systems and FOGA, supply a Swedish based modular exhibition and display system.
The third Company, Mettech Fabrications Ltd is a new venture to manufacture press metal work, aluminium and steel bracketry for the construction industry.
APCO, has been sold to an entirely independent company with the creation of three jobs initially, set to expand as the business grows.
FOGA, has been sold to FOGA System UK Limited, headed up by former Norking employee and FOGA division manager Martin Pearson.
Seven staff will be employed short term, with the intention of further recruitment.
Mettech Fabrications Ltd, which will employ four staff initially, will be headed up by former employees Karl Vernon and Mark Evans.
All three companies, which will continue to operate from the site in the short term future, hope to recruit further staff once fully operational.
The total value of the deal is undisclosed but includes goodwill, stock and equipment of the company, based on the LKH Estate on Tickhill Road in Balby.
Norking had suffered cash flow problems as a result of a slump in the construction industry which it supplied, despite a healthy order book.
Insolvency practitioners at Wilson Field were appointed as administrators on April 4 and have worked to find a new future for the company after a proposed finance package fell through.
Wilson Field insolvency practitioner Lisa Hogg said:
“At this very late stage, our aim was to seek new owners to take on the viable elements of the business.
“Every effort has been made to find a buyer for the company and to salvage three divisions of the business and their associated employment.
“Interest was shown by a number of parties before negotiations resulted in successful sales to different parties”
Wilson Field liaised with directors, employees and the workers’ union Ucatt to find a way forward for the company.