A MANAGEMENT buy-out at Leominster clothing business E Walters (Ludlow) Ltd has left workers with the possibility of a more secure future

The company has now been split into two in deals that go a long way towards ending a difficult and uncertain period for staff at the company following the appointment of KPMG Corporate Recovery as administrator at the end of August.

The retail part of the business has been bought for an undisclosed sum by a team comprising Rosanna Cooper, formerly manager of Walters's retail division, Richard Kirby, a former director of E Walters (Ludlow) Ltd, and Leominster businessmen John and Stuart Hinton.

The manufacturing side has been secured by Jean and Julia Walters.

The 10 retail outlets will trade as Legs Clothing Co in towns around Herefordshire, Shropshire, the West Midlands and Wales, including shops in Leominster, Ludlow and Ross-on-Wye, with all 40-plus jobs now secure.

"We have survived, protected all the jobs and are still part of the community," said Richard Kirby. "It was a good deal for everybody. The administrators are happy with it, and we're happy with it."

Although a full business plan for the new company, Quality Style and Value Ltd, has yet to be finalised, expansion is certainly a possibility.

"Part of survival is growth," said Mr Kirby.

With the parallel buyout of the manufacturing division, the company remains in family ownership and management is in consultation with staff about the future.

A statement issued by Jean Walters confirmed the completion of the management buyout of the assets of E Walters (Ludlow) Ltd by E Walters UK Limited from the administrators of KPMG with effect from October 5.

"Staff have transferred to the new company, which will be trading from the usual premises in Southern Avenue Leominster. "The company will continue to supply retail customers with the same products, and offer third party logistic services," the statement continued.

Those 'same products' include men's trousers from the company's factories in Slovakia and Bulgaria and contracted plants elsewhere in Eastern Europe and Asia.

The crisis threatening the 190 jobs at E Walters (Ludlow) Ltd was precipitated by difficult trading conditions over the summer months, which led the company to seek the protection of the administration order.