Almost a third of jobs at a Perth-based windows company have been lost in an administration process.
Double glazing giant Everest – which has a distribution centre in the Fair City – said the rescue deal had saved more than 400 positions saved but meant 188 redundancies.
The windows and doors specialist was acquired by private equity firm Better Capital in a so-called pre-pack administration deal that saw the firm call in administrators and then immediately agree a sale.
The company said the deal was required to secure its future in the face of “incredibly challenging” trading amid the coronavirus crisis.
Specialist business advisory firm FRP, which arranged the sale, said 413 jobs were safeguarded at Everest’s 18 distribution centres and two manufacturing sites in Sittingbourne, Kent, and Treherbert, Wales.
As well as Perth, the company has distribution centres in Inverness, Glasgow and Ayr in Scotland.
The deal has also helped protect the livelihoods of another 600 self-employed associates in sales and installations, who operate remotely throughout Britain.
Everest was founded in 1965 and is headquartered in Cuffley, Hertfordshire.
Alastair Massey, a joint administrator and partner at FRP, said: “In the face of incredibly challenging trading conditions in recent months, the business required restructuring to ensure a sustainable future.
“This deal secures a significant number of jobs and personal livelihoods for many affiliated roles.
“Moreover, it achieves continuity for customers who have had their orders and deposits secured by this deal and who the company is now prioritising for service and installation.”
He said FRP was working to support claims for staff impacted by the job losses with the Redundancy Payments Service.
FRP said it had been working with Everest on a restructure after its business was effectively closed amid the Covid-19 lockdown.
Installation operations restarted on June 1 as some of the restrictions were eased.
In a notice about the sale on its website, Everest said that trading would remain on a “limited basis” while it rebuilds its operations, but that trading is expected to return to normal over the next three months.
The firm said: “Up until the outbreak of the Covid-19 pandemic, the Everest business was trading successfully, covering its costs and enjoyed leading brand awareness.
“Unfortunately, not being able to install our products removed all cashflow from the business limiting its ability to trade through lockdown.”
It said following the deal and lifting of some lockdown restrictions, “current and future customers can be reassured that their orders will be fulfilled as soon as possible and in line with the UK Government’s safe trading guidelines”.
Better Capital said it invested £3.2 million in the deal.
