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Scottish car parts company saved from closure

A car parts company which went into administration in September has been bought by members of its former management team.

Administrators from KPMG said 109 jobs would be saved following the sale of John McGavigan in East Dunbartonshire, Scotland.

New owners David Taylor and Steve Mathers said they had been "determined" to save the business.

McGavigan, which makes dashboards and other interior car products, had been hit by the decline of the car industry. 

It has a turnover of about £9m a year.

A total of 135 people were employed by the company when it went into administration as a result of declining demand in the car industry.

Joint administrator Blair Nimmo, of KPMG in Scotland, said: "I am delighted that after eight weeks of trading the business, during which the prospect of a sale often looked bleak, we have eventually managed to secure the sale of the business as a going concern.

"Not only has this saved 109 jobs in Scotland, but the sale also ensures that existing customers will continue to be serviced and that suppliers will have ongoing business."

The new owners said: "Through the determination of our customers, our workforce, many of our suppliers and the added support of the Scottish government agencies, we have managed not only to save the business, but to put in motion steps which will allow the business to grow from strength to strength.

"We are confident in the future of the business, even in challenging economic conditions."

Source: BBC News
 

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