The receivers of stricken Belfast-based engineering textiles group Mackie International are to advertise the businesses for sale in Britain and Ireland this week. It is understood the receivers will try to sell the businesses as a group, but are prepared to dispose of them individually.
The businesses will be advertised in the Financial Times and in The Irish Times in an effort to attract local and European interest. The receivers, Deloitte & Touche, were appointed by Ulster Bank, according to sources close to the receiver although it is not clear how much the bank is owed. Ulster Bank is Mackie's banker.
Official confirmation of receivership yesterday ended weeks of speculation about the company's future. A management buyout has been floated as a possibility, but some sources discounted this last night.
It is understood that it would be possible to break up the companies. Mackie essentially comprises four companies. These include ATC, a company which makes control panels for sewage and pumping systems. This company, which employs around 40 people, was profitable, according to figures released in 1997 and had sales of £4.3 million sterling (€6.24 million) that year.
Mackie also has a textile division which produces machines for the textile industry, a general engineering operation which makes machinery castings for the textile and other industries and the foundry plant. The state of the art foundry cost almost £15 million sterling. Its operations include making casting for customers such as Hyster.
Under chief executive, Mr Sul Sahota, Mackie's many businesses - it had up to seven at one stage - were consolidated to four. They were also brought on to one site. Some sources pointed out yesterday that it could be difficult to sell the businesses separately because of this.
In 1997 the company also bought Rice, a British foundry, mainly for its order book. Late last year it embarked on another venture, targeting a company called the Shield Group which was based in Leicester. Again, it was attractive because of its order book. However, the company's failure to secure the £14 million sterling needed for the venture precipitated the move towards receivership.
Management said it regretted the receivership decision, but felt there was no alternative because of the company's financial position. Mr Sahota said it was a sad day for Mackie's. "This place never had a problem with its workforce; it had a management and a strategy problem and I think we managed to resolve both. Unfortunately we ran out of time and money, and maybe someone will take it over who has more time and money," he said. The company employs 300 people. Mr Tom Keenan, of chartered accountants Deloitte & Touche, said he couldn't really say if there would be any redundancies.
"All we can say to the workforce at the moment is to confirm that the business has gone into receivership and, as receivers, we will be endeavouring to market the business for sale and finding a buyer. We are just going to have to pursue this on a daily basis," he said. The full-year results for the company in 1997 - the latest available - paint a grim picture, revealing that Mackie had suffered losses of £11.6 million sterling on sales of £14.5 million. It may well be that only the profitable, or relatively profitable parts of the company can be sold. Like others in the engineering sector, Mackie has been hit by the Asian crisis and the strength of sterling, making its products difficult to sell abroad, as well as difficulties associated with the textiles industry.
Sinn Fein president, Mr Gerry Adams has appealed for help from US President Bill Clinton's special economic adviser, Mr Jim Lyons. Mr Adams said he had spoken to Mr Lyons on Tuesday night about the possibility of financial help from the International Fund for Ireland. "I am in close contact with the management of the company and will pursue this option," he said.
Workers told of their devastation last night as they left the engineering firm. Mr John O'Halloran, a father-of-three from west Belfast, said he was "devastated" when management told employees yesterday of the receivership. "I have been working in Mackie's for the past 25 years; now who is going to want to employ a 40-year-old man. There are very few textile jobs in Belfast, so who knows what is going to happen."
