Job security for 1100 staff of removal company Pickfords could not be guaranteed last night as it was announced the firm has been saved from administration after being bought by a rival.
Pickfords, which dates back to 1695 and was forecast to lose around £1.5m this year, was sold to Team Group whose Team Relocations subsidiary is said to be one of the world's largest international relocation and move management companies.
In mid-February, US removals giant Sirva Inc, the parent company, warned the loss-making business faces going into administration if it was not sold as an entity or broken up to help raise money to pay staff and creditors.
And last night doubts remained over the future of Pickfords' staff.
Yogesh Mehta, Team Group managing director said the famous Pickfords name would remain.
Kevin Pickford, managing director of Pickfords, warmly welcomed the development saying: "I am delighted with the news that the transaction has completed. We are looking forward to working with the Team Group to continue to serve our customers and to advance the business in the next exciting phase of its development."
Sirva chief executive Robert W Tieken added: "We are pleased to announce this transaction, which allows Sirva to focus on our core businesses."
Team Relocations has over 40 operating locations across 14 countries, including offices in Aberdeen and Edinburgh.
The deal, the financial details of which have not yet been disclosed, is not the first that Sirva and Team have carried out. Last year, Sirva sold its moving services operations in 13 European countries to Team.
The business has been struggling amid the housing market slowdown and itself filed for Chapter 11 bankruptcy protection in the US after suffering during the US's property crisis.
Middlesex-based Pickfords, which is estimated to have more than 100 staff in Scotland, relied on a £350,000 cash injection in January to pay staff. Pickfords had "significant" short-term cash obligations, Sirva said at the time.
Sirva Inc, which bought Pickfords in 2002, warned in February that if no buyer at all could be found, the business would be wound up.
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