A NEW boat company has launched in Stourport, saving staff of a collapsed business from unemployment.

When Sandy Lane Industrial Estate based M&D Boat Builders ceased trading on June 30 after running out of cash local businessman Derek Fradgley and his wife Gill decided it was “time to make an investment”.

They set up Stourport Canal Craft Ltd in the Sandy Lane Trading Estate employing the collapsed company’s four staff.

The new business makes steel narrow boat shells, which will be supplied direct to new owners so they can complete the fitting out to their own specification.

It is believed customers and creditors of M&D have been left unpaid but Mr Fradgley said he “could not take on those responsibilities”.

He has been financing the boating sector for more than 30 years through his business Outlook Finance Ltd, which leased the machinery used by the former boat company.

He said: “Boating and waterways is the essence of Stourport, and has been for many years.

“We have been pleased to help fund local businesses in this sector and when one business decided that it could not carry on trading, Gill and I decided that this was the time to make an investment and set up a company that would not only keep Stourport established as a boat building town, but also save four people from [becoming] unemployed.”

Worker Martin Crump added the new start was “just what the doctor ordered”.

“We have our jobs and are getting on with the work we love, building boats,” he said.

Mr Fradgley said the policy for his new boat company would be to buy locally wherever he could.

“We started this business with a blank sheet of paper, machinery, people, premises and a bank account,” he explained, adding he was “confident of developing a good reputation for quality and reliability”.

Mr Fradgley and his wife hope to start an apprenticeship within the next few months and could employ four more staff as the business progresses.

“Fabrication work began on July 18 and we have already had two serious enquiries for boats, even before we have built one” said Mr Fradgley.

“We all feel so confident that our investment has been worthwhile.”