A Black Country furniture manufacturer has saved 160 jobs after undergoing a pre-pack administration deal. Administrators from Opus Restructuring & Insolvency were appointed last month to Kingswinford-based Furmanac after the company had struggled as a result of the pandemic.
A deal has now been agreed to save the business.
Furmanac has been making beds in the UK for more than 50 years but administrators said it had "suffered substantially" during the last couple of years, with the closing and reopening of its own manufacturing site and the closure of its customers during covid lockdowns.
"This was followed by a consistent increase in the cost of materials, combined with a lack of availability and resource challenges. These factors combined, finally proved too much for the business," Opus said in a statement.
Directors approached Opus and, following a review of the company's finances, it was identified there was a viable option to rescue the business through an administration pre-pack deal.
Opus partner and joint administrator Gareth Wilcox said: "If we can find a way to feasibly save a business, we will always look to achieve that outcome. This business has been through some tough times but had previously traded successfully.
"Once we had independently reviewed the figures, it was clear that this was a business that could be saved and that this would achieve the best results for all stakeholders."
Joint administrator Paul Harding added: "Combining the current climate, and the last couple of years, we envisage seeing many more businesses in this predicament. Because Furmanac spoke to us when they did, we had time to ensure a sale could be achieved and that the business could continue.
"We are extremely happy that so many jobs were able to be saved, especially given the personal financial challenges being faced by so many at the moment."
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