Deloitte partners Tim Norman and Steven Hernyk have been appointed to manage the closure of the James Nelson (Tasmania) mill in Launceston.

The James Nelson (Tasmania) mill primarily produced curtain and upholstery fabrics and has been operating for over 55 years. Josh and Mary Pila acquired the business from Courtaulds 25 years ago.

Mr Norman said the now elderly principals wished to retire and had attempted to sell the business for almost two years, however suitable buyers have not been forthcoming.

“Due to uncertainty during this period, some customers moved to other sources thus causing a further decline in sales and viability of the business.

“As losses continued to mount, on legal advice it was decided that an orderly closure of the mill was urgently required to avoid an insolvency situation,” Mr Norman said.

“This orderly closure will ensure all (39) employees and creditors are paid in full before further deterioration results in the need for an insolvency appointment and a possible reduced return to creditors.”