Clothes plant takeover fears

A possible takeover of a closed mid Wales factory could be in jeopardy.

A north Wales businessman is believed to be interested in taking over the former Kenneth Fogg children's clothes plant at Machynlleth, which shut with the loss of 32 jobs.

But a meeting between the prospective buyer, Machynlleth Town Council clerk John Parsons and Welsh Development Agency officials has been cancelled.

The receivers have confirmed they are negotiating to sell the machinery separate to the factory.

To achieve our aim to maximise returns we are now in negotiations to sell the plant's machinery for the best price Kroll spokesman

Mr Parsons said the businessman was "very interested" in taking over the factory.

He added: "Unfortunately there's been a bit of a hiccup in negotiations between the businessman and the receivers, although discussions are ongoing."

Best price

The Machynlleth factory is now in the hands of joint receivers David Whitehouse and Simon Wilson of Kroll's Corporate Advisory and Restructuring Group.

A Kroll's spokesman said: "Our duty is to maximise the return to creditors.

"However, we have not received an acceptable bid for the property and machinery as a whole.

"To achieve our aim to maximise returns we are now in negotiations to sell the plant's machinery for the best price.

"We can also confirm that the property is being marketed with assistance from the WDA."

The Treowain Industrial Estate site was previously home to a Laura Ashley factory and then another company, MDM Ltd, before Kenneth Fogg took it over.

A WDA spokesman said: "We received an inquiry from an individual interested in learning more about the opportunities at the former Kenneth Fogg factory and put him in touch with the receiver who has responsibility for the privately-owned business unit and its contents.

"We understand discussions have taken place between the two parties, although at this stage it is too early to say if they will progress.

"However, we are continuing to work with the receiver to market the site in order to seek new investment and employment opportunities."