Bosal in administration

Exhaust manufacturer cites long-life OE systems as reasons for failure

Published:  14 January, 2013

EXHAUST manufacturer Bosal UK has entered administration, citing long-life OE stainless systems and competition from Eastern Europe as the key reasons.

A statement from the directors of the firm also cites a long running legal challenge to by a group of former employees claiming that they should benefit from an enhanced redundancy package. The statement says that this package was 'negotiated more than eight years ago in very different economic conditions'. Previously, Bosal UK has appealed against a court judgement but has failed to overturn the original ruling.

The directors' statement reads: "Given all of these factors the directors of Bosal UK believe that the company is unable to pay its debts and the future prospects for Bosal UK's business and for its manufacturing operation near Preston can best be determined by a formal administration process. The Joint Administrators can now use their best endeavours to secure a long term future for the business either as a single entity or in parts."

Aside from exhausts, Bosal UK also produced a range of aftermarket bolt-on products including cycle carriers and towbars. Anyone who has an interest should contact the administrator, Duffy and Phelps Manchester.

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