Historic Dundee yarn firm on brink of closure with 60 jobs at risk

News / North East & Tayside

Dundee firm Bonar Yarns is set to collapse just weeks after it was bought over by US firm Newman Yarns.

A historic yarn firm in Dundee has closed just weeks after being saved from administration, putting 60 jobs at risk.

Bonar Yarns is set to collapse just weeks after it was bought over by US firm Newman Yarns, a new company founded by former customer Elite Turf USA for an undisclosed sum.

The Dundee firm, which was founded more than 100 years ago, specialises in polypropylene carpet backing yarns.

Unite the union is now exploring legal action against the owners of Bonar Yarns, after 60 members of staff were informed with two weeks notice that their jobs were at risk after the plant closed on Friday.

"We were informed on Friday from one of our members that the site was actually closing down. Our members were given two weeks notice", Dougie Orchardson, from Unite the Union told STV News.

"We were actually shocked, I believe our members are even more shocked by this, they were highly delighted when the company got bought over.

"However, the news came to them just right out of the blue. They thought their jobs were secure, as did I."

"But that turned out not to be the case."

Unite has confirmed that is now exploring a protective award against Newman Yarns on behalf of its members.

The union's general secretary, Sharon Graham, said: "The Bonar Yarns workers have been treated disgracefully by the new owners.

"The firm has been based in Dundee for 100 years and it would be a tragedy if it permanently closes.

"We are calling on all interested parties including Dundee City Council and the Scottish Government to work with Unite to save these jobs."