A long-established Black Country metal finishing business has been sold out of administration, safeguarding the jobs of 28 skilled workers.
Craig Povey and Richard Toone of Begbies Traynor were appointed as joint administrators of Farrellys Metal Polishers Limited on 21st November, and the sale to FMP (Midlands) Limited completed on 15 December.
Providing metal polishing services for customers including BMW, Jaguar Princess Yachts, and Louis Vuitton, the company is one of the largest of its kind in Europe.
The business, which operated from its base in Wednesbury, had been affected by the difficult trading conditions of the past few years, including the impact of Brexit, rising energy bills, and the general climate of uncertainty, which made it more difficult to manage debt within the business.
Craig Povey, joint administrator and partner at Begbies Traynor in the West Midlands, said:
“This sale has not only secured the employment of a skilled workforce but will also contribute to the stability of the Black Country steel industry supply chain, enabling the business to support the work being undertaken by Marcegaglia in Oldbury and realise the ambition of the UK Steel Charter.
“This positive outcome underlines the importance of seeking advice as early as possible, which has seen a good business navigate its way out of a very difficult set of circumstances and emerge stronger.
“Undoubtedly this is a sector that is operating under pressure with intense competition from overseas, which makes it even more significant to safeguard this highly skilled workforce in the industrial heartland of the West Midlands.”
Steven Finnegan, director at FMP (Midlands Limited), said:
“Trading conditions were made very difficult for the company, but by taking decisive action it was possible to turn the situation around with the support of Angel Accounting and Begbies Traynor. We are now looking forward to a strong 2024 where we will be increasing our workforce.
“We would like to thank all of the companies in the steel industry supply chain who have provided extensive help and assistance during this time, as well as our amazing long-standing workforce who have supported the business every step of the way.”
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