The future of label specialist Burall Carwood was in the balance this week as managing director Mike Hughes tried to put together a new management buyout plan.


An earlier plan foundered last week when a potential backer changed his mind. This prompted administrative receivers from BDO Stoy Hayward to issue a statement saying the Birkenhead-based food and drinks label manufacturer would close.


Hughes said this week that things are not over at this stage. The initial bid had fallen through because of a hole in the finance plan, but he was now exploring two other credible options.


Administrative receiver Dilip Dattani said he was aware of the MBO offer. The business was currently progressing towards an orderly wind up but was still alive and kicking with orders being processed.


Burall Carwoods workforce has been cut by 40 to 100 since it went into administrative receivership a month ago (PrintWeek, 8 June). It recorded a 1m pre-tax loss for the year to February 2000.


A spokesman for Andy Leet, chief executive of holding company Burall Group, said he was unable to comment on Burall Carwoods future until Dattani had completed negotiations with Hughes.


Story by Richard Rhydderch