Joint Administrators Michael Solomons of BM Advisory LLP and James Robinson of Finn Associates, the specialist restructuring, recovery and insolvency firms, have successfully concluded a sale of the business and assets of Jena Tec Precision Limited to Motion Control Engineering Limited.
The Nottingham based manufacturer of linear and rotary motion products, including ballscrews, spindles and actuators, was placed into administration on 17 September 2019, following financial difficulties. This was brought about by a general country-wide slowdown in business and consumer confidence as a result of the UK’s current volatile political and economic climate.
Michael Solomons said: “The UK manufacturing sector has been under significant pressure in recent months as a result of issues surrounding Brexit. Jena Tec suffered the knock-on effects, resulting in a downturn in sales principally due to consumer caution. This led to severe cash flow difficulties and, ultimately, rendered the business insolvent.
“Following an independent marketing campaign to find a buyer, during which time Joint Administrators continued to trade the business to ensure a continuity of service and to maintain the company brand, BM Advisory is very pleased to have concluded a successful sale of the business and assets of Jena Tec. The sale preserves all jobs and enables the future trading of the business; a positive outcome for employees and welcome news for the manufacturing sector. We wish the business every success going forward.”
Commenting on the sale, Chris Truman, Managing Director of Motion Control Engineering, adds: “This rescue of the business has enabled the continued employment for the team and for the ongoing supply of the full range of products which had been built up over many years. This is a good result for the industry as a whole, and we look forward to an exciting future for all of our stakeholders.”