NOTTINGHAM, UK (14 January) -- On 7 January Raleigh's new managing director, Phillip Darnton, announced that the Raleigh and Sturmey Archer factory sites in Nottingham will be sold to the city's university. Raleigh is now looking for a suitable site in the Nottingham area on which to build a new factory, although Darnton said the company had up to four years to complete the move. He also said the company had "received an attractive offer for our remaining factory sites on Triumph Road. This will enable us to create a modern, purpose-built factory that in turn will allow us to become more cost effective and competitive".
Raleigh had been looking for a buyer for the 12.5 acre factory site since last May, when it announced it would be abandoning frame manufacturing in Nottingham.
"Nottingham University approached us after having received a federal grant to build a new teacher's college," said Derby CEO Gary Matthews. "After that, everything moved very quickly."
The University of Nottingham has also purchased Sturmey Archer's 8.5 acre site located opposite Raleigh on Triumph Road.
According to a statement from the company last year, the proceeds from the sale of the factory site will be used either to pay expenses associated with the company's restructuring or to pay down the company's senior credit facility, or a combination of the two.
Raleigh is currently in discussions with Nottingham City Council to find a suitable alternative site. Darnton: "In the light of a number of difficult and painful decisions which we have had to make in recent years, we were especially keen to announce this very positive strategic opportunity as soon as possible." (TK)