A high-tech yarns business in Dundee has gone into administration after suffering “unsustainable cash flow issues”.
Bonar Yarns, which was founded more than a century ago, makes advanced polypropelene yarns used in carpets, floor coverings and even sports pitches.
Michelle Elliot and Callum Carmichael, partners with FRP Advisory, have now been appointed joint administrators and say they are looking to trade it in the short term with all staff until a buyer is found.
Bonar Yarns, which is based at the Caldrum Works in Dundee, was acquired by a management buyout team in 2020. It has a turnover of around £6.5m and employs 61 people.
READ MORE: Frasers Group acquires the Overgate Shopping Centre
Its products include flame retardant yarns for the travel flooring market, UV stabilised yarns for the outdoor flooring market and yarns made from recycled polypropelene for the artificial sports turf market.
Joint administrator Michelle 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.
“We will continue to trade the business in the short term whilst marketing the business and assets for sale with immediate effect and would urge interested parties to contact us as soon as possible.
“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.”
