THE rolling stock refurbishment company Railcare has been saved, after a deal was struck with the German company which was on the verge of buying the business in July.

The talks with Knorr-Bremse failed at the end of last month, but although terms have now been agreed, the workforce has been more than halved.

Administrators were called in at the start of August after the talks broke down, and many of the 500 staff have since been made redundant. But following today's announcement, 202 jobs have been confirmed as safe at Wolverton, near Milton Keynes, and Springburn in Glasgow.

Kim Rayment of administrators BDO said: “The sale of Railcare’s business and assets to Knorr-Bremse will secure a future for the business and jobs. Under the conditions of the sale Knorr-Bremse has agreed to pay retained employees their July salaries, which Railcare was unable to provide before it entered administration. Current employees will therefore be paid for all work they have done to date.

“We are delighted with this very positive outcome for the business, employees and more broadly for the communities of Wolverton and Springburn, both of which have a strong railway heritage. This outcome has only been possible because of the support of customers and the dedication of staff, and we are grateful for this cooperation throughout the administration.”

Railcare has recently completed a refurbishment of the Heathrow Express fleet and it also has contracts to upgrade rolling stock for Greater Anglia, including the operator's fleet of locomotive-hauled Mk3 coaches.