More workers to go as receivers struggle to find buyers for Mackie

MACKIE, the financially troubled Belfast-based engineering group, has let a further 100 workers go as hopes of finding a buyer for its remaining businesses fade. Around 80 workers will be kept on for the time being, although the businesses are being wound down.

The joint administrative receivers appointed by Ulster Bank four weeks ago said they have made contact with 200 parties in the hope of selling the Springvale Foundry and Mackie International as a going concern. These efforts have so far been unsuccessful.

In a statement, the receivers said detailed discussions were held with six interested parties during the past week, but none had translated into firm offers.

"Given this, and the significant trading losses being incurred each week we keep the businesses open, we are regretfully left with no alternative but to commence an orderly run-down of the business activities, which will lead to an ultimate closure situation," the statement said.

In the interim, the receivers said they will continue looking actively for a buyer, but are not hopeful of success.

Mr Roger Powdrill, from Deloitte & Touche, said the receivers did not want to offer any optimism to the remaining workforce at this stage. "There is over-capacity in the textile engineering sector worldwide and it is very difficult to persuade people to make a significant investment," he said.

Last week, the receivers announced the sale of Mackie's ATC business, which makes panels for sewage and pumping systems, to its senior management. The sale of this profitable division safeguards 60 jobs, but, as a whole, Mackie's workforce has fallen from over 300 at the beginning of the year to 80 yesterday.

Mackie's holdings now include a foundry and a textile division which produces machines for the textile and other industries. Its state-of-the-art foundry cost almost £15 million sterling (#21.79 million) and its operations include making castings for customers such as Hyster.

In 1997, the company also bought the British foundry, Rice, mainly for its order book. Last year, it undertook another venture for similar reasons, targeting the Leicesterbased Shield Group. The company's failure to secure the £14 million sterling (#20.34 million) needed for the venture precipitated its move towards receivership.

Mackie's last set of full-year results show that it suffered losses of £11.6 million sterling (#16.85 million) on sales of £14.5 million in 1997. The company has been hit by the Asian crisis and the strength of sterling, making its products difficult to sell abroad.