New managing director Terry Kelly told PrintWeek that he will be honouring all trade debts owed by Clevedon, Somerset-based WH Ware & Sons and offering staff continued employment.
Of the company's 36 staff, 34 will continue with the company, the other two employees will take voluntary redundancy.
Simon Thornton, of Houghton Stone Business Recovery, was appointed as administrator of WH Ware & Sons on 30 June 2009. A sale of the business and assets to TK Binders, whose directors are Kelly, his wife Tina Ware-Kelly and son Robert Kelly, was completed the same day.
According to Thornton, the company was hit by the recession, as well as struggling with a factory too big for its requirements. He is now assisting Kelly in locating new premises in the area.
He said: "This is a very old company; its history dates back to the 1800s. You know that there is a recession on when you are dealing with a business of this nature, they weren't fly-by-night. They were too good a business to not save – it will succeed."
Thornton added that the company had geared itself towards the high output magazine market, which subsequently decreased in demand.
Kelly was involved with the company under its previous guise, but was a minor shareholder. His wife is related to the company's founder, as well as its last major shareholder David Ware, who passed away last year. Kelly said that the company's problems stemmed from the death of its owner, making it "untenable".
He added: "I haven't bought this company for peanuts, I paid hundreds of thousands. I have written to all debtors informing them that any debts owed by WH Ware & Sons will be honoured by TK Binders, and already cheques have been put in the post. All the staff, some of them have been here for 30 years, have been told that they will have continuous employment.
"I am now working to relocate to a smaller local site – negotiations are ongoing. We are going forward as a leaner machine and our overheads have been reduced."
He added that an order has been placed for a Kolbus Ratio binder which will be installed in September.
