FIFTY-TWO jobs have been saved at Darwen-based Zen Wallcoverings Ltd following a major restructuring that has seen the company and its assets sold to The Heritage Print Company.

The company was one of the UK's largest wallcovering manufacturers, with an annual turnover of more than £8 million.

Directors at Zen contacted Manchester-based accountants and turnaround specialists PKF and asset financiers Davenham Trade Finance Ltd following a rapid downturn in the North American market and a chain of events which severely affected the company's cashflow.

Last August debris lodged in the culvert running under the factory and caused flooding in the production area, curtailing the company's manufacturing output. Despite help from other companies in the region, Zen's ability to service customer orders was hit, which in turn severely affected cash flow.

After protracted negotiations The Heritage Print Company Ltd bought the business and assets of Zen Wallcoverings Ltd and all 52 remaining employees were transferred. The company will continue trading as Zen.

Kerry Bailey, a partner at PKF, said: "This is a satisfactory conclusion to what has been a quick demise of an established business. The key point is that a lot of jobs could have been lost and this would have had a dramatic impact on the local economy.

"With The Heritage Printing Company's lower cost base and Zen's established product range and brand, they have every right to be confident for the future."