Kitchen manufacturing specialist Mereway Kitchens has been rescued from administration after being sold to a newco connected with Sigma 3 Group.

Lee Causer and Danny Dartnaill, both of BDO LLP, were appointed as Joint Administrators of Mereway Kitchens Limited on 18 August 2023.

The Joint Administrators completed a sale of the business to Highlight Green Acres Limited, which was incorporated on 10 August 2023 and is owed by parent company Sigma 3 Group Limited, immediately following their appointment.

Sigma 3 has been manufacturing fitted furniture for kitchens and bedrooms since 1975 and was founded by Brian Lakin, who is the named director of the newco.

All 150 employees have been transferred to the buyer, with their employment rights protected. 

Lee Causer, business restructuring partner at BDO, said: “Despite considerable efforts from management and the team, the challenging business environment and ongoing economic headwinds have impacted the Company’s ability to trade and administration was the only option. 

“The sale of the business is a positive one. It provides the best outcome for creditors in the circumstance, as well as saving jobs of those employed by the company.”