Derbyshire business ‘asset stripped’ before sale

Courtaulds, West Mill Belper
Courtaulds, West Mill Belper

A Derbyshire MP has revealed she has been told that a clothing company which went into administration last week was ‘asset stripped’ before the announcement.

Mid-Derbyshire MP, Pauline Latham, says sources have told her that the owners of Courtaulds transferred many of the company’s best assets into other holding companies, leaving only limited assets available for the administrators.

The closure of the Belper firm was announced last week, making 334 workers redundant and ending a 200-year-long association with the Amber Valley town.

Mrs Latham has also spoken to the Rt. Hon Sajid Javid MP, Secretary of State for Business, Innovation and Skills asking what support the Government is able to offer to any potential buyers.

She said: “Everyone in the local community would like to see a responsible sale of Courtaulds which would allow employees to keep their jobs and not just the sale of an empty building.

“I have asked the Secretary of State to help and I hope the administrators will realise that the company has so much potential and could be sold.”

On Tuesday, the Department of Work and Pensions co­ordinated a meeting with support teams to confirm the help and assistance that was available for Courtaulds employees.