Workers have been told a historic Dundee company is set to close, just weeks after it was bought out of administration.
Bonar Yarns, a manufacturer of specialist polypropelene carpet backing yarns, collapsed at the beginning of April, with nearly 60 jobs put at risk.
Administrators cited “unsustainable cashflow issues” for the demise of the historic company.
Just two weeks later, the firm was taken over by an American business.
Bonar Yarns was bought out of administration by Newman Yarns Limited, a new business set up for the purposes of the acquisition.
Bonar Yarns on brink of collapse
Now though, The Courier understands the business, based at Caldrum Works in St Salvador Street, is to close.
The Courier has been contacted by several employees and their families, who have outlined the position.
One said: “On Friday all the employees were told it was not viable for them to continue so the factory closure was announced.
“They are making staff continue to go in to do nothing.
“The union have been advised and had a meeting to inform Newman Bonar they must give 90-day consultation plus redundancy.
“Newman was telling staff they are only paying them two weeks’ pay.
“It’s cruel to make them sit in the factory doing nothing.”
Another employee claimed the new owners had been battling “crippling” energy charges of more than £300,000 a month.
The owners have been asked to comment by The Courier.
New owner’s ‘delight’ just weeks ago
Accounts for the year to November 30 2022, show Bonar Yarns sales of £6.8m. It also made a pre-tax profit of £107,000.
Newman Yarns is run by John Newman, who also owns Elite Turf USA, a distributor of synthetic sports turf. It was a former customer of Bonar Yarns.
When he took over the company, Mr Newman said: “We are delighted to have agreed a deal with the administrators to acquire the assets of Bonar Yarns.
“We look forward to integrating the company into our expanding synthetic turf business.
“We’re also delighted to retain the knowledge and experience of all 59 staff and look forward to welcoming them to Newman Yarns.”
History of Bonar Yarns in Dundee
Bonar Yarns can trace its history back to the foundation in 1903 of the famous Low & Bonar business that specialised in the manufacture of technical textiles.
In May 2020, Low & Bonar was delisted from the London Stock Exchange after a £107 million sale to German firm Freudenberg.
The Dundee management team completed a deal to purchase the Bonar Yarns division.
Dating from 1872, Caldrum Works was said to be the world’s first fully integrated, single-storey jute works.
It grew to become the second-largest jute mill in Britain in the 1920s, after Camperdown Works, also in Dundee.
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