The company, which produced yarn for carpets and artificial grass at Caldrum Works, entered administration in March 2023, citing “unsustainable cash flow issues” after a 2020 management buyout.

Administrators from FRP managed a brief reprieve, selling the business to Newman Yarns Limited (NYL) in April 2023, saving approximately 60 jobs. The new business was created by former Bonar Yarns client John Newman of Elite Turf USA.

Soon after forming, the business faced liquidation due to high energy costs. While a temporary energy deal offered hope, the factory ultimately closed, and NYL ceased operations in October 2023, leading to further job losses.

Former Newman Yarns employees subsequently won an employment tribunal for insufficient notice of dismissal.

The sale by administrators to NYL raised £251,200, but substantial debts remained. Close Brothers, holding a floating charge, are owed £851,000. HMRC will receive their £49,000 in full, as will preferential creditors owed £5,827 in unpaid pension contributions, The Courier reports.

Unsecured creditors, owed £2,632,153, will only receive a share of the “prescribed part,” estimated at £30,935 before distribution costs. The administration is set to conclude on 31 March.