IST Member TSL Turton Ltd. went into administration on 13th January and has now been acquired by its major supplier Bond Precision Grinding Ltd., who is specialist spring steel stock holders. The company has been re-launched under the new name, TSL Turton (2014) Ltd. Although TSL Turton’s plant in the Midlands – the former West Bromwich Springs plant – has been closed, the acquisition means that all 36 jobs at the company’s two Sheffield plants (Effingham Road, Attercliffe – once the home of Tempered Spring – and in Burton Road, Neepsend) has been saved. The new owners are also based on Effingham Road.
Steven Bond, Bond Precision’s Managing Director is quoted as saying: “We have dealt with the company for 20 years and tried to buy it twice before. This time we have managed it. TSL Turton has been under duress for the last two or three months, mainly because they did not have any money to buy supplies. It has been a good company over the years and I want to make it a good company again.”
TSL Turton hit problems in August 2013 when it breached some of its financial covenants and almost had to cease production. The slowdown led to a loss of income, which made the group’s financial problems more acute. Buyers for the business were sought before Christmas and problems were made worse when a deal to sell the firm collapsed on New Year’s Eve. The insolvency specialists, Abbey Taylor Ltd., who had been brought in when the company hit difficulties, had to seek potential buyers again and the deal was completed this week.
The administrators said that rescuing the business had been difficult on account of complicated interlaced financial arrangements involving TSL Turton’s subsidiaries. The intention had been to try to save as many jobs at the three plants as possible, but in the end that wasn’t possible, but they were pleased with what had been able to achieve. TSL Turton had been in a very difficult position because there were substantial arrears of wages, but the purchaser has taken the employees and preserved their rights. Unsecured creditors should see some return, but just how much will depend on the outcome of discussions which are taking place with debenture holders, who take priority when it comes to settling a company’s debts.