Insolvent finishing equipment manufacturer MB’s UK distributor Encore Machinery, along with members of MB’s management team and its Swiss and Italian dealers, have joined the private individual in supporting the company financially and continuing to trade.

The company was handed over to the investors on 4 December, with production manager Friedhelm Bruestle becoming managing director.

The German company filed for bankruptcy on 23 July, attributing its troubles to poor sales in the quarter leading up to Drupa. Under German insolvency law, the government was paying MB’s 150 employees’ salaries, but aid was due to run out on 30 November.

It is understood that, prior to the takeover announced on Monday, an investor had pulled out of taking on the company. Other interested parties had withdrawn due to the risk perceived in the print and paper handling industry.

In mid-November, the administrator, Grub Brugger’s Martin Mucha, reached the conclusion that the business would need to close before the shock private investor signed the contract on Monday evening.

Mucha said: “MB was running out of business. Customers were willing to place orders but wanted a company that was not insolvent.”

He officially closed the business on Friday 30 November, and trading ceased for one day at the beginning of this week before the new management opened it again on Tuesday.

The St. Georgen, southwest Germany-based company, will continue to trade “without restrictions” according to a statement from MB, and will be renamed Mathias Bauerle Falzen und Kuvertieren. 106 employees and 18 apprentices from the original workforce will continue to work at the company.

This article originally appeared at printweek.com

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter