EDDIE Stobart shareholders have approved a £55 million rescue sale in a bid to secure the future of its 6,500 employees.

The Carlisle trucking firm, famed for its green and red lorries, had been on the brink of collapse after struggling to deal with a £200 million debt pile and recent accounting errors.

Investors voted in favour of private equity firm Douglas Bay (DBay) Capital’s offer for the business in a crunch vote at a general meeting in central London.

DBay said it will inject approximately £55 million of new financing into the historic distribution company to provide “necessary liquidity” to continue to trade.

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It said shareholders voted “overwhelmingly” in favour of the DBay offer – which had been backed by Eddie Stobart management – and both parties intend to complete the move as soon as possible.

The meeting saw the buyer go head to head with former Stobart Group boss Andrew Tinkler, who put forward an
£80m equity raise to save the firm.

Eddie Stobart chief executive Sebastien Desreumaux said: “The proposed transaction provides Eddie Stobart with the opportunity to move forward and look to deliver sustainable growth and profitability from a stable footing.

“Our main priority and focus is now continuing to deliver the high levels of services expected by our customers as we move into the busy Christmas period.”

A DBay spokesman said: “We would like to thank shareholders for supporting our transaction, which will bring immediate stability to the business."

Primark owner Associated British Foods has told shareholders it is on course to hit expectations, with strong growth expected in its sugar division, although profits at the fashion chain will take a slight hit.

At the company's annual general meeting, chairman Michael McLintock said: "This year, AB Sugar will benefit materially from the increase seen last year in EU sugar prices and from further cost reduction.

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"We expect another year of strong profit and margin growth in grocery, with Twinings Ovaltine in particular benefiting from a more efficient tea supply chain."

On Primark he added that three new stores have opened since the end of the financial year, bringing the total to 376 sites across the world - with particular focus on France and Spain.

He added: "We expect margin for the full year to be only a small reduction on that achieved last year, on a lease-adjusted basis, with the effect of a weaker sterling on purchases being largely offset by cost reductions in both the cost of goods and overheads."

The chairman also said all preparations for Brexit and contingency plans are in place when the UK leaves the EU.

His comments come a month after Associated British Foods revealed pre-tax profits slipped 8% to £1.17 billion for the year to September 14 as it was hit by losses caused by the sale or closure of businesses.

Adjusted pre-tax profits for the year, which strip out exceptional items, improved by 2% to £1.4 billion.

Revenues were up by 2% to £15.8 billion for the year, largely driven by Primark which continued to shrug off the malaise affecting many of its high street retail rivals.

Investors in Ted Baker will be hoping for some positive news to cheer about in its trading update next week after a difficult year for the luxury fashion brand.

Shares in the UK fashion firm have slid by more than 75% since January in a year which has seen it post three profit warnings.

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Earlier this week, the company's shares plunged further after bosses uncovered that its inventory had been overstated by between £20 million and £25 million.

In its half-year update in October, the company swung to a £23 million loss for the six months to August 11 as it was impacted by heavy discounting across the high street.

It also reported a 0.7% decline in sales to £303.8 million in the period as it was also impacted by consumer uncertainty and a poorly received spring/summer collection.