Historic Dundee textiles business with 61 staff falls into administration

A Dundee textiles business that can trace its roots back 120 years has gone into administration as a result of “unsustainable cash flow issues”.

Bonar Yarns produces a range of advanced backing yarns used in a variety of environments and sectors. The firm has a turnover of about £6.5 million and employs 61 staff though no redundancies have been made as a buyer is sought for the business. Michelle Elliot and Callum Carmichael, partners with FRP Advisory, have been appointed joint administrators of Bonar Yarns, which is based at the Caldrum Works in Dundee and was acquired by a management buyout team in 2020.

Elliott said: “Bonar Yarns Limited can trace its history back to the foundation in 1903 of the famous Low & Bonar business that specialised in the manufacture of technical textiles. Following a management buyout, the business focused on developing and marketing innovative yarns for a variety of different floor covering and artificial sports turf markets. We will continue to trade the business in the short term whilst marketing the business and assets for sale with immediate effect. Bonar Yarns is highly regarded for its excellence in carpet yarns innovation, so we are hopeful that the business will be of interest to a company already operating in the broad coverings market or an entrepreneur keen to enter the market by acquiring an established brand.”

The range of products made by the firm includes flame retardant yarns for the travel flooring market, UV stabilised yarns for the outdoor flooring market and yarns made from recycled polypropelene for the artificial sports turf market.