MBO of Thermopak Ltd

HFW Plastics has been bought out of administration by its management, in a move that has secured 64 jobs.

Newly formed Thermopak bought the Gateshead firm just over a month after Howard Smith and Mark Firmin of KPMG were appointed as administrators after the firm had lost a major contract. Nineteen jobs of an 83-strong workforce were cut.

Private investors and members of the HFW's management team have funded Thermopak's deal for an undisclosed amount. Former managing director Mike Stewart will lead the business and all the remaining 64 jobs will be transferred to the new company.

Smith said: "We are very pleased to have completed a sale of this long-established business and hope that the new company will be in a position to maximise the potential of its strengths."

Thermopak was advised by law firm Irwin Mitchell and Sterling Corporate Finance.

Andrew Walker of Irwin Mitchell's insolvency team said: "This is a significant deal which keeps 64 people in jobs which had looked very uncertain a few weeks ago."

The firm produces thermoformed plastic trays for fresh foods and is a supplier to all the major UK supermarkets.