THE company behind a former Kilbirnie carpet factory has now been wound up after documents revealed it owed more than £3 million.
Aquafil UK shut the doors of its North Ayrshire facility three years ago, with the loss of around 40 jobs.
The Mill Road factory had been operating in the town for many years before Italian multinational Aquafil took over the business from W&J Knox in 2014.
Now, liquidators from BDO have been appointed for the UK offshoot.
Accounts published last year by Companies House showed that by the end of 2024, Aquafil had made a loss of £205,000 for that year. The firm also had net liabilities of more than £3m.
The documents add: "The company ceased production at its Kilbirnie plant on October 25, 2023. Following the cessation of production, the company continues to operate in relation to its non-production trade.
"The company relies upon the support of its ultimate parent, Aquafil S.p.A.. The company has received a letter of support, that confirms Aquafil S.p.A. will continue to provide financial support for a period of at least 12 months from the date of approval of these financial statements [August 2025].
"Therefore, as there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, the directors have concluded this does not represent a material uncertainty with regards to going concern."
A spokesperson for the firm said at the time redundancies were announced: “Covid and Brexit have brought about challenging trading conditions in the UK.
“In this most recent recession, Aquafil UK is finding it increasingly difficult to fulfil its planned capacity through existing clients.
“This has led to management taking the decision to lower our cash-flow prices, subsequent falling gross profit margins and problems.”
They continued: “We have had to consider how we can reduce our overhead costs and consider the viability of a site that has continued to make losses for five years and further losses are unsustainable.
“We therefore propose to close the plant. This therefore means that all employees are at risk of redundancy if we close the plant. We will carry out a full consultation process with all employees.”
GMB organiser Chris Kennedy said the decision to shut such a well-established factory had been sudden and had left workers shocked and uncertain.
He added: “The company’s decision was unexpected but is another indication of how rising prices are impacting on businesses and jobs."
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