A Dundee business has gone into administration following “unsustainable cash flow issues”.
More than 60 jobs at Bonar Yarns, a textile firm based in Dundee, are at risk while the company looks for a new buyer.
The carpet yarns manufacturer, based at the Caldrum Works, was bought by a management buyout team in 2020.
FRP Advisory said the polypropylene specialist will continue to trade “in the short term” while a buyer is sought.
The company, which is more than 100 years old, has a turnover of around £6.5m and employs 61 people. There have been no redundancies.
Michelle Elliot and Callum Carmichael, partners with FRP Advisory, have been appointed joint administrators of Bonar Yarns.
Elliott said: “Bonar Yarns Limited can trace its history back to the foundation in 1903 of the famous Low & Bonar business that specialised in the manufacture of technical textiles.
“Following a management buyout, the business focused on developing and marketing innovative yarns for a variety of different floor covering and artificial sports turf markets.
Bonar Yarns is highly regarded for its excellence in carpet yarns innovation, so we are hopeful that the business will be of interest to a company already operating in the broad coverings market or an entrepreneur keen to enter the market by acquiring an established brand.”
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