AN engineering firm which eight years ago received a cash injection to stave off partial closure has gone into administration.
Now, around 45 workers at Warburton Holgate Ltd in Milltown Street, Radcliffe, face uncertainty over the firm's future in the wake of this week's action.
The news was broken to the workforce of the paper, board and converting machinery firm on Tuesday. Apparently, between 15 and 20 staff left soon afterwards.
It is understood that previously, due to a continuing downturn in the company's fortunes, a number of staff had been made redundant.
A separate Radcliffe company, BYC Rollmakers, which is apparently part of the same group, is believed to be unaffected by the administration.
Accountants
Manchester-based accountants BDO Stoy Hayward have been appointed as administrators and are currently handling the day-to-day affairs and the running of the business.
In 1994, Warburton Holgate faced closure of one of its two sites in Bury. But managing director Alec Littlewood was granted a cash wish when the Department of Trade and Industry stepped in with a key £260,000 grant.
That paved the way for the firm to go ahead with a £1.3 million expansion involving relocation to its present Radcliffe base and investment in new plant, machinery and vehicles.
Two years ago, Warburton Holgate acquired Simon Holder which had been located in Bury for 30 years before being transferred to Cheadle Hulme, near Stockport.
The move brought staffing levels up to 90, including 23 personnel from Simon Holder which was involved in the design of paper mills and paper making equipment.
It had been hoped the acquisition would allow the Radcliffe firm to extend its product range and to capture vital foreign contracts.
Warburton Holgate Ltd had also harboured hopes that the company would increase its business from a £7 million to a £10 million operation.
At the time of the takeover, Mr Littlewood said there had been a considerable downturn in the paper industry. It is understood that the prolonged and current difficulties within that same market has led to the administration.
Yesterday, no-one from BDO Stoy Hayward was available for comment. A spokeswoman told the Bury Times that only partners could speak to the press and that none was available for comment.
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