AN INVESTMENT firm which has successfully boosted the fortunes of an iconic designer shoe firm and a leading noodle bar chain has stepped in to save the jobs of almost 600 staff at a leading North-East seafood supplier.

Cumbrian Seafood Limited which, despite its name, is based in County Durham, and its subsiduary Border Laird Limited called in administrators from PwC yesterday morning.

PwC announced shortly afterwards that the business had been sold to private equity firm Lion Capital, which in 2008 took over Young's Seafood Limited, the UK industry leader.

The management team at Young's was yesterday brought into Cumbrian's principal factory in Seaham, County Durham, where 378 staff are employed, to work with management there.

Cumbrian, which produces a range of seafood under the Perfect Catch and Ocean Pure brands, also employs 79 people in Amble, Northumberland and 117 at Whitehaven, Cumbria.

Yesterday rising raw material costs and a reduction in business was blamed for the firm's downfall.

Last night Pete Ward, chief operating officer at Young's Seafood Limited, said: "Lion Capital have asked the Young's management to become involved in working with the Cumbrian management in taking the business forward. It is too early to say what the outcome will be.

"All the staff employed by the business on Friday still work for the business today."

Lion Capital has a track record for improving businesses, buying a majority stake in iconic shoe firm Jimmy Choo in 2004 and doubling its money when it sold it on for £185m in 2007.

Earlier this year sold its stake in noodle bar chain Wagamama for more than £200m, having paid just over £100m six years ago.

Also this year Lion Capital bought a majority stake in fashion chain All Saints for £105m.

Yesterday's deal comes just six weeks after Cumbrian, which moved from Maryport to its £20m Seaham plant in 2007, admitted it was considering offers for the business.

In October the privately-owned business, which supplied various leading supermarkets including Morrisons, Tesco and Asda with fish and seafood products, said it had received recent interest from "industry players" looking to buy the company out.

Sean Hamilton, director at PwC in Newcastle, said: "The sale means that it remains business as usual for customers and staff.

"I'm delighted that we have been able to secure a sale of the business, enable the transfer of all employees and preserve the continuity of supply to customers in the run up to Christmas."

Peter Vassallo, chief executive of Cumbrian Seafoods, added: "Whilst I recognise that it is a difficult time for all concerned, this transaction is in the best interests of our employees and customers."

Earlier this year, the company was named as one of the top 100 food and drink manufacturers in the UK and Ireland by Food and Drink Business Europe.

Companies were listed based on turnover and pre-tax profit figures, with Cumbrian reporting £155.5m turnover and pre-tax profit of £2.7m.

It is unclear how yesterday's deal will affect grant funding awarded to the firm in April from the Government's Regional Growth Fund, to help it develop additional manufacturing capacity and create more than 100 new jobs. In October it was still to receive the cash.