Bittersweet adventure begins for director
Jan 9 2009 by Karen Dent, The Journal
THE former head of a kitchen business which fell victim to the economic downturn is off to Dubai to set up a factory for the Saudi group which snapped up the manufacturing equipment belonging to his family-run firm.
David Steven was the managing director of Grange Kitchens, which was placed in administration last September when work dried up in the construction industry downturn.
The company, on the Tyne Tunnel Trading Estate, which specialised in designing and fitting kitchens for new homes, was wound up last November with the loss of 50 jobs when administrator Begbies Traynor was unable to find a buyer.
However, two Middle Eastern companies expressed an interest in buying Grange’s assets when they were advertised.
Administrator Andy Haslam said: “There was no interest in the UK, but there were two notices of interest from Dubai. Because it is such a close knit community [kitchen manufacturing], word goes around very quickly.
“It is high value equipment and it is a costly exercise to move it abroad, but it’s better than buying new abroad.”
The manufacturing equipment was bought by Unipods, part of the large Saudi-based Al Rajhi Investment Group, which paid over the market value for the gear. The money raised from the sale will be used to pay Grange’s creditors.
On completion of the deal, Unipods offered Mr Steven the job of setting up a kitchen-making factory in Dubai under its new Unikitchen brand. The company already makes bathrooms.
He said: “It happened through some contacts I had in the UAE. I was approached by this company to see if there was any opportunity to, A, buy the manufacturing assets and, B, would I be interested in setting up that business?
“It happened almost straightaway after the company was placed in administration. I was keen to find something to do. It was done and dusted in November, the company went into administration in September, so it was about six weeks.”
Mr Steven has signed a three-year contract with Unipods to manage the new factory and is due to jet to Dubai at the start of February. His wife Sarah and their three children, aged nine, seven and five, will follow in the summer after the end of the school year.
“I see it as a long-term prospect,” he said.
He is setting off with mixed feelings after the collapse of his family business, which was set up by Eric Steven and a number of partners in 1973.
“It’s disappointing and exciting all in one go, a family business that was here for 35 years, and all those people we employed, I have great sympathy for them,” said Mr Steven.
“But it’s a great adventure. Its a great opportunity to explore different cultures. We’re excited by it and scared at the same time.”
