Matthew Taylor's full report
Matthew Taylor's full report
The Langholm textile firm Reid and Taylor Ltd has been bought for an undisclosed sum.
But according to administrators it has been sold as an assets only sale and not as a going concern.
Administrators O' Hara & Co Ltd confirmed today that the sale went ahead yesterday to a consortium of three companies one of them is based in Bradford.
It's understood that one of them is SIL Holdings Ltd which already has interests in Langholm.
Chris Brooksbank from O' Haras Ltd said there had been no offers to buy the firm as a going concern.
He added that the company, which went into administration on April 19th with the loss of 35 jobs, had very little working capital and only a few orders remaining on its books.
– Chris Brooksbank, O' Hara & Co
It's very sad that the company wasn't able to continue as a going concern and the sale's had to go through as an assets only sale.
There were no offers to take it on as a going concern and no money to continue the business.
I appreciate that this will be disappointing to many former workers and will have a large impact on the community of Langholm.
There are fears over the future of employment in Langholm after the town's last major textile mill went into administration.
More than 30 people have been made redundant at Reid and Taylor, which makes cloth for luxury brands.
It is another blow for a community which was built around the industry.
Hannah McNulty has been looking at what the future holds:
There are fears over the future of employment in Langholm after the town's last major textile mill went into administration. More than 30 people have been made redundant at Reid and Taylor, which makes cloth for luxury brands. Hannah McNulty reports.
Judith Johnson from The Langholm Initative outlines help available for staff made redundant by Reid and Taylor going into administration
Dumfriesshire MP David Mundell has expressed his disappointment over the news that Langholm based textile mill Reid and Taylor has entered administration, with the loss of 35 jobs.
The firm has been manufacturing luxury cloth and fabric since 1837.
"This is devastating news for Langholm and is a real blow for the whole community and textiles industry based there.
"Right now the priority must be to help and support for those facing job losses, and everyone involved needs to work together to try and find a way forward.
"This will be a distressing time for those who have lost their jobs and my thoughts are with them and their families.
“I will continue to keep in close contact with the administrators and local agencies so that I can do everything possible to support the affected individuals and the community.
– David Mundell MP, Dumfriesshire, Clydesdale and Tweeddale, Scottish Conservatives
There are now big questions over the future of the business and the site, but given the way the business and manufacturing rights were structured the outlook is not positive at this time.
“The speed at which this situation has unravelled is unfortunate, and we must now focus on ensuring that whatever happens to the existing business that the site will be able to be put back into use and that a buyer can be found.
"I will remain in contact with the administrators and will continue to monitor events closely and work on behalf of the local community for the best possible outcome.”
People living in Langholm say the news that the last major textiles firm in the town entering administration is a 'devastating blow'. More than 30 staff at Reid and Taylor have been made redundant. The firm which makes high quality fabrics for luxury brands has been operating since 1837.
Administrators O'Hara have confirmed the order book was 'healthy' and the company went into administration because of a lack of investment from the Indian owners. There has already been some interest in buying the business. Councillor Dennis Male said he thought the company was doing well
Around thirty people have been made redundant as a well-known textile mill in Langholm has gone into administration.
Reid and Taylor has been in the town since 1837, making what it describes as luxury fabrics.
The administrators say they are in negotiations with a number of interested parties and hope to sell the business and assets.