Midgeater firm cuts staff to attract bids

Published on Tuesday 4 March 2008 20:59

A SCOTTISH company behind the invention of bug-catching devices Midgeater and Mosquitoeater has axed more than half of its workforce in a bid to make the company more appealing to potential buyers.

Dundee-based Texol Technical Solutions, which was taken into the hands of administrators KPMG on Monday following a period of poor trading, has been forced to lay off 85 of its 150 staff.

Blair Nimmo, joint administrator and head of restructuring at KPMG in Scotland, said yesterday that he had already received approaches from a number of parties who may be interested in buying the business.

Nimmo said: "Whilst it is regrettable, Texol's current situation means that the administrators have no option but to make these redundancies.

"The remaining workforce will continue to assist the joint administrators in realising the maximum value from the business and its assets."

He added: "I am very pleased to have been contacted by parties interested in acquiring Texol and remain hopeful of finding a buyer for the business as a going concern.

"We welcome any party who may have an interest in acquiring Texol to make early contact with us."

The company has an annual turnover of 11m.