NEW life has been breathed into the failed Langholm Dyeing Company, writes Bob Burgess.
It went into administration last month with the immediate loss of 52 jobs with the remaining 10 to go after wind-down operations had been completed.
The closure of the industry-respected dyeworks was put down to the global credit crisis.
But lo
cal politicians said it was cash-flow crisis rather than weak order books that was to blame.
Local MP David Mundell believed there was a window of opportunity that only remain open until the end of this month.
And on Tuesday it was confirmed the dyeworks is back in business under former director Frank Steele. The local man was at the centre of a 2002 Royal Bank of Scotland-backed £6 million management by-out with Jeff Bearsley from the Leeds Group.
Mr Steele has now brokered a fresh deal with the Newcastle-based administrators Tait Walker. Waterside Mills, plant and equipment have been sold, and the company is operating as FTS Dyers.
Fifteen staff have been taken and by the end of October the workforce is expected to rise to 30.
Mr Mundell told TheSouthern: " It was clear early on that a solution would be needed quickly and the administrators of the Langholm Dyeing Company took a very positive response.
"The company got into difficulty originally, not because it was not a viable business, but because it was a victim of the global credit crunch and had American backers. It is very good news that the dyeing trade will continue at these works.''
He added: "It is great to get some positive news for the workers and for the town. I wish Mr Steele every success with his new business and I hope the dyeing works go from strength to strength."
Langholm Dyers was founded in 1946 by David Stevenson and went on to spawn the Edinburgh Woollen Mill empire. The two firms later parted company.
The full article contains 328 words and appears in Southern Reporter newspaper.
