Twenty five jobs have been saved at a long-standing Melton firm after part of the business was bought out of administration by members of the same family who built up the company.
Burton Street based building firm T Denman and Sons (Melton Mowbray) Limited, a company founded in 1880 which built a host of landmark buildings in Melton over the years, went into administration on January 27.
The closure of its contracting division - which was focussed on new commercial build developments - resulted in the loss of 15 jobs.
But the remaining part of the business - comprising the smaller maintenance division - has been bought by members of the Denman family, saving 25 jobs and running as newly incorporated T Denman and Sons Limited.
Chris Stirland, joint administrator and partner at business advisory firm FRP Advisory, said: “We are pleased to have sold this long-standing Leicestershire-based building business, comprising the remaining maintenance division, and securing 25 jobs in the process. We would like to thank the loyal customers and key suppliers for their support during the administration process, allowing for the business to continue to trade during the 12 day period of administration and we wish the business under new ownership all the success for the future.
“The business overall had faced more recently a downturn in its contracting division due to increased competition which had eroded margins to unsustainable levels and the undertaking of some poor performing contracts.
“Restructuring efforts, including a cut to company overheads, were insufficient to alleviate the unsustainable pressure on cash flow and working capital, leaving no viable option but to seek the protection of administration to allow trading to continue while the administrators at FRP Advisory marketed the business and assets for sale.
“As administrators we have provided any former staff with the necessary support to make timely claims from the Redundancy Payments Service.”
Local landmarks built by T Denman and Sons over the years included the town’s King Edward VII Grammar School, opened in 1910, the Polish Church, completed in 1963, Latham House surgery, built in 1982 and Melton Police Station, completed in 2002.
The firm was also responsible for many of the town’s prime residential areas, Waterfield Leisure Pools, Venture House and a number of schools in the borough.
Carpenter Tom Denman was the first of the family to carry out building work and, with his sons, Tom and Harry, formed T Denman and Sons in 1880. The company’s first mark on Melton was a row of houses in Fernie Avenue which sold for £100 each.
More recently the company had diversified from its housebuilding roots into a multi-disciplinary business operating from its Burton Street premises.