A deal to sell a Presteigne company and secure its 110 jobs could be done within the next two or three weeks.
The administrators for Kaye Engineering say they are talking to a number of interested parties and are hopeful of completing a deal soon.
The company, which makes high pressure die-cast aluminium automotive components, was put into administration on January 12 – and 17 of its 120 workforce made redundant – after struggling through the recession for the last year.
The Harper Street company is still trading and administrators London-based Fisher Partners are hopeful they can sell it as a going concern and maintain current job levels.
Kaye Presteigne, which bought out J L French UK Ltd in 2006, has been badly hit like many others by the general downturn in the economy over the last year, as well as more particular problems in the automotive industry.
The company’s order books dried up at the end of 2008 and into 2009 and, although efforts were made to cut costs by reducing workers hours, one company director ploughed his own money in to keep the business afloat and talks took place with Finance Wales to provide support, it was not enough.
Difficult market conditions took their toll, and with their turnover down, a lack of credit insurance and the volatile price of raw materials, Kaye Presteigne’s income was squeezed.
Specialists
Fisher Partners, specialists in business restructuring, took control of the business and have been working on an eight-week plan to try and save it.
Brian Johnson, joint administrator of Fisher Partners, said: “The business is trading, the customers are funding the trade and we are talking to a number of interested parties.
“We hope to conclude a deal within two or three weeks.”