A MANAGEMENT buyout at Montgomery Litho (Glasgow) has saved 76 jobs at the printing business.
All the trade and assets of the firm were acquired by the newly formed McAllister Litho Glasgow, which was able to seal an agreement with administrators from KPMG. The deal includes the trading companies MLG Glasgow, The Print People and MLG Marketing Solutions.
The transaction was led by Janette McAllister, former production director at Montgomery Litho, who takes on the managing director role at the new business and is funding the deal from personal funds.
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The company will continue trading from premises in the Finnieston area of Glasgow.
Ms McAllister said the firm will serve the litho, digital and print finishing markets while also running a reprographics division.She added: "I am extremely grateful for the support of the staff and customers in what has been a difficult few months for the company, but remain confident the business will soon regain its momentum.
"Glasgow is a good business and I wanted to save the jobs of my colleagues.
"McAllister Litho will provide the same excellent level of service and ensure continuity for our customers in the months ahead."
It is understood that several other senior staff have been retained but former Montgomery Litho owner Thomas Montgomery is not involved.
Blair Nimmo, head of KPMG's restructuring practice in Scotland, said: "The sale of the business represents the best possible outcome for the Glasgow operation which will now continue to trade. We are particularly pleased to have secured the sale after less than a week as transactions like these are very difficult to achieve in the current economic climate."
Montgomery Litho – the largest book printer in Scotland – was put into administration on January 11 due to trading losses and cash flow pressures. Administrators made 148 staff redundant and its facility in Haddington was closed. There are nine remaining staff in East Lothian and KPMG is still assessing the assets there with a view to a sale.
The most recent financial results for Montgomery Litho showed a £1.2 million pre-tax loss in the calendar year 2011. That came as turnover dipped from £24.2m to £19.9m after the loss of a major contract in the insurance sector.
The firm shut its Perth site last year as part of a planned winding down.