One of Tauranga's most established timber manufacturers has found a new lease on life under new ownership - nearly two months after slipping in to receivership.
A team of 34 skilled workers at the Timber Finishings' Timfin joinery factory in Hull Rd, Mount Maunganui, have retained their jobs - and they will keep supplying the building trade in both the New Zealand and Australian markets.
The factory, which started at the Mount 43 years ago, continued to operate after it went into receivership in early July.
The business was advertised internationally and the receiver, Tom Rodewald, completed a deal with entrepreneurial brothers Des and Dave Fermah, who take over on Monday under a new company, Timfin Pacific. They will retain the trading name of Timfin.
"It's a good result - the staff are happy because they've still got jobs in a tough market," said Mr Rodewald. "We advertised the business heavily and attracted a number of interested parties.
"The new owners believe they can grow the business and increase the employment opportunities," he said.
The Fermah brothers operate the diversified Fermah Group, based in Whakatane, which has interests in retailing, commercial and residential property development and investment, entertainment and manufacturing.
Fermah Group owns Cinema 5 in Whakatane, four video stores in Whakatane, Kawerau and Auckland, and has a half share of food delivery company FoodRunner.
The Fermahs opened some of the country's first video stores in the early 1980s and their brand, Video Source - which introduced seven-day hire - operates a franchise system and a buying group, with more than 25 stores involved.
Des Fermah told Bay of Plenty Times that Timfin was "a robust business and its fundamentals were intact. It's just unfortunate that it was carrying a lot of debt."
He said the market was quiet at present but "we expect it to pick up. Timfin has been part of the Mount business environment since the 1960s - it's an institution, and we are very happy to be involved.
"One of the critical factors was the calibre of the staff. We won't be there all the time and we will be reliant on the management team, who know the business well," said Mr Fermah.
Timfin has the latest equipment. It recently installed a $1.5 million finger-jointing machine - and the Fermah brothers are prepared to invest in the future.
A third of Timfin's timber joinery products, particularly window and door frames, panelling and flooring, are sent to Australia.
Mr Fermah said: "We will re-ignite the business over there. They also sold a bit to United States and we will re-investigate that."
His father, Milkhi Fermah, established a steam-powered sawmill in Whakatane and employed 40-50 staff during the 1930s depression, making butter boxes.
"I guess it must be in our blood to get involved with timber manufacturing at this time."
The receiver had no takers for Timber Finishings' Matangi Sawmill in Aerodrome Rd - 10 staff lost their jobs - and its plant and equipment, which has been taken off site, will be auctioned in late September.
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