Textile group to close

May 29 2009 by Andrew Mernin, The Journal

ADMINISTRATORS battling to save a 174-year-old textile firm said yesterday closure was inevitable after angry staff blocked an 11th-hour rescue.

Carlisle’s Stead McAlpin went into administration seven weeks ago, with the loss of 62 jobs, leaving another 61 workers in fear of redundancy.

Administrators Begbies Traynor lined up Lancashire textile firm R Soper as a buyer. But this week the workers voted against the deal because they disagreed with the employment terms.

Yesterday hopes the firm could be saved were raised as news emerged of a second rescue bid from a consortium of businesspeople. But administrator Julian Pitts said the offer was less than the break-up value of the assets and so closure was imminent.

“The reality is that Mr Soper’s offer is the only viable offer we have received, and the only one that could be accepted by an administrator. This looks to have been the last chance to save the business as a going concern.

“That a vocal minority has been able to derail the only chance to save the jobs of everyone involved is terribly unfortunate, but that looks increasingly likely.”