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Failed Preston car parts firm still waiting for a buyer

Posted on - 26th January, 2013 - 6:21pm | Author - | Posted in - Business

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Administrators for failed Preston car parts firm Bosal UK are still weighing up potential bids.

Another Preston casualty of the bleak economic times Bosal UK was established in 1977 and has 35 years of trading from their Preston site. Up to 161 jobs are still at risk if the company folds, with at least 120 people at the Walton Summit Centre.

Duff & Phelps were appointed to oversee the business earlier this month allowing it to trade while they consider bids for all or parts of the enterprise which specialises in car exhausts. The business was suffering losses due to more durable exhaust systems reducing demand and cheaper Eastern European competition. There is also a long running legal challenge to Bosal UK by a group of 48 former employees regarding redundancy packages. Faced with these challenges the company was unable to pay its debts.

The administrators will now ‘explore restructuring opportunities including a sale of part or all of the business and/or assets of the company.’  Potential rival purchases Klarius and Tenneco are also suffering in the current economic climate. Manufacturing at the Preston site may cease but the sales and distribution arms may survive.

Although chiefly know for it’s exhaust systems, from Preston Bosal also supplied roof boxes, racks, towbars and cycle carriers. A recent OE contract had also been won to supply Land Rover with exhaust systems for the Evoque.

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