20th Mar 2018 16:50
Airea intends to commence formal consultation period with around 50 employees of the unit and is exploring opportunities for some employees to transfer to other division of the company.
"The closure proposal follows a period of significant loss making despite the implementation of a range of initiatives to improve business performance including new product development, site rationalisations and strict cost and working capital controls. The trading environment for residential carpets has worsened and the ongoing trend to cheaper synthetic products has led to further declines in demand for high quality wool carpets," the company said.
The closure, which will complete by April 30, is anticipated to be cash generative, with proceeds being distributed by the company to shareholders.
Airea said its contract flooring business Burmatex, which accounts for 74% of group turnover, is "highly" profitable and cash generative and the company intends to increase its investment into the development and growth of the business.
The company is scheduled to release its results for the 18 months ended December 31, 2017, on Wednesday.
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