An 11th hour merger has saved a highly respected Morecambe company from going bust.
Morecambe Bay Wines will continue to trade after an undisclosed cash injection from the Bradford-based drinks firm Narang.
The White Lund-based drinks wholesalers had been in danger of going into pre-packaged administration, a bankruptcy procedure where a restructure plan is agreed in advance to a company declaring its insolvency.
Peter Cross, managing director of the White Lund-based drinks wholesalers, said: “It’s business as usual.
“Morecambe Bay Wines will continue to trade run by myself, my family and staff people are used to dealing with on a daily basis.” Recent accounts show the 29-year-old business is operating at a profit but Mr Cross said they had experienced “cashflow problems”.
“We are a profitable business and a growing business but the economic climate and lack of support from banks has caused us to look at alternative arrangements for our funding,” said Mr Cross.
“This merger will allow us to expand our portfolio and services.”
Morecambe Bay Wines and Spirits Co supplies drinks, snacks and bar equipment across the North West.
The Newgate-based firm employs 90 staff and also runs the Cross Bay Brewery. Aside from food and drink, the Narang Group also operates in the textiles, electrical and plumbing, and bathrooms industries.