An American firm and former customer, has come to the rescue of Dundee based Bonar Yarns.

The 120 year old manufacturer which was founded back in 1903 and is still based at the Caldrum Works in Dundee, specialises in polypropylene carpet backing yarns. Their products include sustainable 100% recycled yarns and flame-retardant products for the airline, cruise and train markets as well as woven carpets & artificial sports grass.

Bonar Yarns had experienced a notable increase in turnover, reaching £6.7 million for the year ending November 30 2022 – an 8% rise from the previous financial period.

Unfortunately, this did not reflect on their operating profit which fell by 14%. Their fixed assets were valued at £1.6 million and current assets of £5.5 million.

The company was acquired by a management buyout team in May 2020 but the Dundee based company ran into “unsustainable cash flow issues” causing them to put the company into administration in early April 2020.

The companies aim and that of administrators FRP Advisory was to “continue to trade the business in the short term whilst marketing the business and assets for sale with immediate effect” said Michelle Elliot at FRP.

Fortunately, Bonar Yarns has now been bought out of administration by a new company set up by former customer Elite Turf USA, for an undisclosed sum. This sees all assets as well as the trading name moved to the new entity; Newman Yarns with approx 60 jobs being saved.

Administrators were delighted with such an “excellent outcome” and wish success ahead for both involved parties.