Knitting Division Ltd, a manufacturer of weft knitted fabrics used to make ladies fashion and childrenswear, has been purchased out of administration by private equity investors.
The Leicester-based company experienced significant financial challenges following decreased demand from retailers that were forced to close in response to Covid-19 restrictions, and on 25th of March 2021, Miles Needham and Simon Carvill-Biggs, partners at specialist business advisory firm FRP, were appointed Joint Administrators of the company.
The company has now been purchased by private equity investors with all employees continuing to work from the business’s warehouse in Wigston.
Miles Needham, partner at FRP and Joint Administrator, said: “The Covid-19 pandemic has had a significant impact on all types of firms.
“The closure of non-essential retail has created huge pressures across the entire supply chain, including clothing manufacturers, which resulted in an unsustainable decline in sales for Knitting Division Ltd.
“We are pleased to have been able to secure new owners who have retained all staff and will now be able to take the business forward.
“We look forward to seeing the company thrive as restrictions ease and the retail sector begins to reopen.”