THE company which bought a York catering firm out of administration 18 months ago has sold its majority stake to a Bristol-based industry equipment supplier.

Catering supplier Nisbets has bought the controlling stake in Space Catering (UK), the parent company of Full Sutton-based Holmes Catering Equipment Solutions.

Space rescued Holmes Catering after it fell into administration in October 2014 following what directors described as "cash flow" issues.

The move saved 25 jobs as well as the brand name which has since continued under Space.

Now Gloucester-based Space will see its majority shareholding fall to Nisbets.

Ian Bidmead, who has been managing director of Space Catering since 2012 will continue in his post along with Louise Chuter and all of the senior management team. Mike Mellor, who founded the business in 2000, will leave in summer 2016.

Mr Mellor said: "I am delighted that Nisbets have invested in Space and taken over my shareholding; I cannot think of a more perfect partner to support Ian and the team to take the business forward.

"After 30 years in the catering equipment industry, it is the right time for me to exit and I leave the company in great shape, in good hands and with the backing of one of the industry's leading companies."

Paul McMahon, managing director of Nisbets, added: "We are very excited by this deal at Nisbets. We see this giving added value service to both sets of customers, which can only be good for business."