County Durham’s Steelcraft saved from closure

Steelcraft Ltd, which is located on the Drum Industrial Estate in Chester-le-Street, had faced difficulties due to a reduction in turnover during the pandemic and the steep rise in steel costs.

Administrators at Northpoint Insolvency Practitioners said Steelcraft’s financial situation meant a sale out of administration was necessary and secured a purchase by Buckingham-based Argento Investments.

Jonathan Irwin of Argento Investments said: “We have several operations in the sector, but this is our first investment in the North East and represents a great opportunity. We are impressed by the underlying core business and the team at Steelcraft.

“With our investment and commercial acumen, we think the new business can become, once again, a solid North East operation. It was a shame that the company itself could not be saved, but that was not feasible in the circumstances.”

The firm’s former managing director Matthew Rodgers will retain a senior management role at the firm. He said: “My grandfather started the company and, after a tough time recently, I am pleased the business now has a platform for stability and growth.

“I’m so pleased the buyers saw the potential of the business and the skills in the team. It’s well-deserved that all 25 staff get to keep their jobs and initial feedback from customers is that they are equally happy we are sticking around.

“The new senior management team share my enthusiasm for the future of the business and we are focused on maintaining our high standards and aiming for growth. Whilst the circumstances necessitating a sale were unfortunate, this is definitely the best possible outcome.”