Manchester Hosiery saved from liquidation

Posted on 5 Jan 2012
Palm Cotton, clothing

Thirty jobs have been saved at the clothing manufacturer after Dains LLP, administrators of the firm since April, announced the sale of the company to Hong Kong-based Aikon International.

The deal has been completed for an undisclosed sum and sees Aikon International, a supplier of thermal and hosiery textile products, take over the business with immediate effect.

Aikon released a statement declaring that the acquisition of the Palm, White Swan, Guardian and High Cross brands, which are manufactured by Manchester Hosiery, will play a significant role in expanding its underwear and hosiery business into Europe.

Aikon have pledged to continue manufacturing from the Hinckley factory, Leicestershire, one of the few remaining knitwear manufacturing sites still in the UK, and the new owners are visiting the factory today.

Manchester Hosiery went into administration after it suffered cash flow problems and made a loss during 2010, despite reducing the workforce and cutting overheads during the year.

Dains LLP were appointed in April 2011, following a review of the company’s financial position. In their capacity as Joint Administrators, Martin Smith and Nicki Hawksley have continued to trade the business for nine months.

The pair aimed to continue the supply to customers while maintaining the value of the brands they manufactured and undertaking negotiations with a number of interested parties.

Andy Stevens, a director at Dains, praised the staff for their continued support throughout the period of administration.