Historic Dundee textiles business goes bust, again, with loss of almost 60 jobs

A rescue deal for an historic Dundee textiles business has failed resulting in the loss of almost 60 jobs.

The Dundee firm made specialist polypropylene yarns used in carpets and floor coverings and had recently focused on materials for sports pitches.

Bonar Yarns, which could trace its roots back 120 years, went into administration in April, and was sold to Newman Yarns, a new business created for the purposes of the acquisition. The resulting firm, Newman Bonar, owned by John Newman, made specialist polypropylene yarns used in carpets and floor coverings and had recently focused on materials for sports pitches. The company supplied a global customer base and employed 57 staff.

Following the acquisition, the directors sought to stabilise the business and return it to viability through securing formal contracts of scale with its key customers and procuring new supply deals. However, the company is said to have faced “intense challenges” with significant increases in costs, particularly energy. It was also unable to re-establish contracts with key customers at a sufficient level to make the business viable.

Blair Nimmo, chief executive of Interpath Advisory and joint provisional liquidator, said: “This has been a well-known Dundee business for many years with a strong global reach and it is extremely disappointing for the company’s many stakeholders, funders and employees that it could not continue to trade viably.”

The majority of the company’s employees have been made redundant. A “small number” have been retained by the joint provisional liquidators for a short period to assist them with the orderly winding up of the business.

Geoff Jacobs, managing director at Interpath Advisory and joint provisional liquidator, said: “This is indeed very disappointing for Dundee to see the closure of a long standing business. Our focus will be on supporting the employees affected, and securing and realising the assets of the company which primarily comprise its name, customer base, stock and plant and machinery. Clearly it would be great to see the business continue in some manner and therefore, if any party has an interest in acquiring the business and/or its assets, they should contact the joint provisional liquidators as soon as possible,” he added.

Newman Yarns was founded by John Newman, owner of Elite Turf USA, a distributor and installer of synthetic sports turf.

Bonar Yarns: Almost 60 jobs saved as historic Dundee textiles firm is bought over