Carpet company Brintons, which employs hundreds of people in Telford, has been saved from the brink of collapse by a £40 million buyout.

The firm’s managing director today said the deal was a step towards securing employment in the area.

American private equity firm Carlyle has bought the firm, which employs 200 people at Halesfield in Telford and about 500 in Kidderminster, for £20 million, while investing £20 million more to clear debts.

Managing director Don Coates said: “The business was in a precarious financial position, so without this it could have folded.

“The outlook today is much sounder and quite bright. We are getting all the investment we need to pursue our objectives. From the point of view of the staff there’s a great deal more security in the business now and that’s a good thing.

“We haven’t sought any guarantees from Carlyle (about employees) as you don’t get those kind of things, but they are very impressed by the quality and calibre of our employees and wouldn’t have put money into it if they weren’t.”

He added: “We work with a lot of local suppliers and if it failed it would have had a knock-on effect.”

The move severs the Brinton family’s ties to the company, established by William Brinton in 1783.

Financial pressures mounted on the firm despite prestige contracts, including carpeting the new Wembley Stadium. It employs almost 1,700 around the world.