Transaction offers hope of new jobs
THE timber construction arm of collapsed retirement and care home developer Castleoak has been bought out of administration.
Cardiff-based Castleoak Holdings and its group businesses was put into administration last week by its directors.
Will Wright and Steve Absolom from Interpath Advisory were appointed as joint administrators to Castleoak Offsite Manufacturing and Castleoak Holding.
The joint administrators have now confirmed the sale of the assets of Castleoak Offsite Manufacturing to Robinson Manufacturing, a specialist manufacturer of high-quality timber engineered roof trusses, floor joists and timber frames
Based in Ebbw Vale, Castleoak Offsite Manufacturing was an offsite timber frame manufacturer for the group’s retirement and care homes.
Robinson Manufacturing plans to restart production at the site and will seek opportunities to provide new employment where possible to staff who were made redundant following the appointment of the joint administrators.
Mr Wright, head of restructuring at Interpath Advisory and joint administrator, said: “Although a number of companies across the construction sector are facing significant challenges as a result of issues including price inflation, supply chain disruption and labour shortages, there are still parts of the sector which are seeing exceptional demand and strong growth. In particular, the demand for more modern and sustainable methods of construction is driving opportunities in the growing timber frame market.”
Will Daniels at Interpath Advisory, who advised on the transaction, added: “We are delighted to have concluded this transaction, which will see production re-start in Ebbw Vale and which will hopefully provide new employment opportunities for a number of employees who had been affected by redundancy. We’d like to thank all stakeholders for their support in helping to conclude this transaction and wish the team at Robinson Manufacturing all the best for the future.”
Simon Kidney, chief executive of Robinson Manufacturing, said: “The location and infrastructure in the Ebbw Vale factory is well suited to help us meet the increased demand we have been experiencing across our existing network of seven UK factories. Timber frame is featuring heavily in the plans of most major national and regional housebuilders moving forward, and the acquisition of the assets of Castleoak Offsite Manufacturing strengthens our business for the future.”
Mr Absolom and Sarah Collins from Interpath Advisory were also appointed as joint liquidators of Castleoak Care Partnerships.
They said regrettably 69 staff were made redundant prior to their appointment. The liquidators said there were working closely with customers to hand back the sites and realise remaining assets to ensure an orderly handover of the construction projects.