Buyer for Fraser Eagle found before company closed

The government's industry task force on Friday identified a possible investor to take over the whole of the Malta operation of Fraser Eagle just before the company closed down making 60 employees redundant, The Times Business has learnt.

This was communicated to the management of Fraser Eagle, however, Malta Enterprise was informed that the acquisition of the Malta operation by a third party was not part of the company's current strategy.

A week ago Fraser Eagle, a UK-based transport company, announced its intention to appoint an administrator as a result of difficulties it was facing due to the international recession. On Friday it decided to close down its call centre in Malta and it announced its decision to do so on Saturday.

Sources told The Times Business that Malta Enterprise immediately got in touch with Fraser Eagle's management as soon as it learnt of the difficulties the company was facing in order to offer assistance.

"It was made clear to us that the management of the Malta operation was thinking of operating the call centre on the basis of potential contracts which were in the process of being finalised," an official source told The Times Business.

Fraser Eagle, based in the UK, specialises in passenger transport, travel and logistics. Services offered include pre-planned and emergency coach and taxi services, corporate travel, event transport, incident management transport and destination management services.

The company started out as a coach company in 1919, transporting holidaymakers to the coastal resorts in England and Scotland.

The future viability of the company was in doubt last month when it announced that 50 of its 170 staff were being laid off and that its cars division was being closed.

In January 2007, Fraser Eagle announced plans, to invest in a Lm15 million (€34.94 million) business centre in Malta, following the success of its first few years here.

The organisation first came to Malta to identify a company that could develop its transport management software.

That same month, Prime Minister Lawrence Gonzi opened the £1.8 million new headquarters of Fraser Eagle, in Padiham, Lancashire, bringing together under one roof 180 staff from the various branches of what was then a rapidly growing group.

Questions sent to Fraser Eagle in Padiham on Monday about the closure of the Malta operation remained unanswered before going to print.