More than 400 jobs saved as Lancashire-based manufacturing group sold out of administration

More than 400 jobs have been saved after a raft of companies across a manufacturing group were sold out of administration.

Richard Harrison and Howard Smith from Interpath Advisory were appointed as joint administrators to 14 companies across the Pexion Group on March 19.

Stuart Irwin and Richard Harrison were appointed joint administrators over another group subsidiary, Nitronica Ltd, on the same date.

Headquartered in Chorley, the Pexion Group specialises in the design, development and manufacture of high specification electronic components and sub-assemblies for high-tech industries.

The group comprises of parent company Pexion Ltd and 14 trading subsidiaries.

Get the latest headlines, straight to your inbox, with The LEP’s free emails

Over recent months, the group had experienced challenging trading conditions and had started to come under increasing financial pressure from its suppliers.

This in turn put pressure on its liquidity position. 

In response, the directors sought to undertake a review of the sale and restructuring options available to them, but when a solvent solution could not be found, they took steps to seek the appointment of administrators.

Immediately following their appointment, the joint administrators completed six separate transactions, safeguarding the future 13 of the group's operating subsidiaries, and preserving 430 jobs at sites across the country.

Richard Harrison, joint administrator and managing director at Interpath Advisory, said: "We are delighted to have concluded these six transactions which not only will safeguard the future of thirteen of the group's operating subsidiaries, but importantly, safeguards 430 jobs.

"Pexion is a highly diversified group which supplies some of the world's largest OEMs and tiered supply chain providers across key industries including the aerospace, defence and automotive sectors. 

"The complexity of the group, coupled with the financial challenges it was facing, meant there was a requirement to complete six separate transactions to a very short timetable. As such, we are enormously grateful to the very many stakeholders who worked collaboratively with us to get these transactions over the line."

The transactions included:

• The sales of Pexion Ltd (based in Chorley), Rictor Engineering Ltd (based in Denton), Alan Gordon Engineering Ltd (based in Chorley), Paragon Precision Ltd (based in Hull), SKN Electronics Limited (based in Birmingham), HT Tooling Solutions Ltd (based in Manchester), Elite Tooling Solutions Ltd (also based in Manchester) and Oxton Engineering Ltd (based in Birkenhead) to a company owned by Baaj Capital LLP. A total of 144 people have transferred to the purchaser
• The sales of Nitronica Ltd (based in Ballynahinch, Northern Ireland) to Hinchtech Ltd and Simtek EMS Ltd (based in Margate) to Westwood EMS Ltd. A total of 174 have transferred to the purchasers
• The sales of Claro Precision Engineering Ltd (based in Knaresborough) and Drurys Engineering Ltd (based in Hitchin) to Amcomri Group Ltd, with 76 members of staff transferring to the purchaser
• The sale of Precision Engineering Pieces Ltd (based in Tewkesbury) to Geometric Manufacturing Ltd, with 38 members of staff transferring
• The sale of Clitheroe Light Engineering Ltd (based in Clitheroe) to Bryden Venture Engineering Ltd with a total of 25 employees transferring as part of the transaction

Phasa Ltd, based in Newmarket, is not included as part of these transactions and as a result, the joint administrators will take steps to wind this business down, with the loss of four jobs.

In addition, the joint administrators have made 13 people employed by the parent company Pexion Ltd redundant. 

The joint administrators will be providing support to all those impacted by redundancy, including supporting them with claims to the Redundancy Payments Service.