More than 50 employees have been made redundant as an age-old textile factory in Dundee shuts down permanently. The factory, called Newman Bonar, formerly known as Bonar Yarns, had been rescued from closure twice earlier this year but has now been forced into liquidation.
Unite the Union expressed the staff’s confusion in the wake of the announcement. Dougie Orchardson, the industrial officer, stated, “We thought that the last time would be the last time. We believed the company was safe, and everything seemed fine.” Unfortunately, things did not work out as expected, and once again, these individuals have lost their jobs.
Orchardson explained that the prevailing sentiment among the workers can be summed up in one word: bewilderment. They had gone through a long and tumultuous journey, and they had allowed their hopes to rise.
The factory, which specialized in producing carpet backing and materials for sports pitches, employed a total of 57 workers. With the exception of four employees who will be retained until the company’s official winding down, all others have been made redundant. Company executives attribute the closure to escalating costs and an inability to renew critical contracts. Interpath Advisory has received the responsibility of serving as the liquidators for the company.
Chief Executive Blair Nimmo expressed his disappointment, stating, “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.”
Fellow liquidator Geoff Jacobs echoed these sentiments, remarking on the closure as a significant blow to Dundee City. He assured that their primary focus will be on supporting the affected employees and securing and liquidating the company’s assets, which include its name, customer base, stock, and machinery.
Jacobs, in a slightly optimistic tone, mentioned his desire to witness the survival of the business in any possible way. He extended an invitation to potential buyers or investors who had an inclination towards acquiring the business or its assets, urging them to get in touch with the appointed joint provisional liquidators promptly.
The textile factory holds a prestigious legacy of over a century, operating from the iconic Caldrum Works in the city. Local MP Chris Law lamented the closure, emphasizing the disappointment felt by both the workers and the local community. He commended the employees’ resilience and determination in their efforts to salvage the company and acknowledged the profound impact this news would have on them.
Law expressed his condolences to everyone impacted, emphasizing the expertise of the workforce in our city and urging administrators to explore every possibility in order to retain the company and jobs within Dundee.
