Scottish carpet yarns manufacturer Bonar Yarns has been placed into administration.
Michelle Elliot and Callum Carmichael, both of FRP Advisory, have been appointed as joint administrators of Bonar Yarns, which manufactures specialist polypropylene carpet backing yarns.
The Dundee-based business has kept all 61 staff in place while administrators seek a rescue bid for the business.
It is understood that the company, which has an annual turnover of around £6.5m, has experienced ‘unsustainable cash flow issues’ but will continue to trade in the ‘short-term’.
A statement from administrators said there have been no redundancies yet at the company, which can trace its history back to 1903, and that it has undertaken a marketing process for the business and assets with any interested parties to urgently come forward.