Enclosure manufacturer Manhattan Showers has been given a cash injection from new shareholders that, the company says, secures its future following the death of its founder.

New managing director Gary Campbell (pictured) has now hit out at industry rumours surroudnignthe company's demise that, he said, have been spread by rivals.

In December 2010, majority shareholder and founding partner Robert Simpson suffered a severe brain haemorrhage at a company board meeting. Simpson's wife and Manhattan finance director Karen Simpson was at his side.

Now, BSC, a substantial Hong Kong based construction materials company has taken over Robert Simpson's 51% share of Manhattan following Karen Simpson's decision to step away from the business.

Bathroom industry stalwart Stephen Gannon has also come in as a new business partner and shareholder. Former sales director, now managing director, Gary Campbell is also a significant shareholder.

At the time of Robert Simpson's death, wife Karen's first intentions were to carry on as the majority shareholder, however, Campbell told kbbreview, it proved too difficult. It was left to the remaining board to find someone to buy the Simpson shares and BSC was already a trading partner with the company.

"The fit was perfect for us," Campbell said. "BSC looked at us and saw the wider potential of the two business joining forces. It gives them a footprint in the UK and gives us links into the more active emerging markets.

"The outcome could not have been better as this has been a most difficult period for us all at Manhattan."

The BSC investment has given the company "stability", Campbell said and has promised significant investment. "BSC has asked for a five year plan to show how we can improve our market share, which areas we need more product development in and how they can invest in that."

The shower enclosure market has been one of most competitive and fiercely fought sectors in the KBB industry during the difficult market conditions of the last couple of years.

"It is a very difficult sector, because there is no real brand value for the consumer apart from a few like Matki, Showerlux or Daryl," Campbell said. "Therefore when that happens it makes it an easy market for low cost imports to take a share. At Manhattan we've been increasing our product value and Robert always strived to make sure our range was continually upgraded. That's all been going on in the background of really recessive market conditions. But investing in product is the only way you can develop your share."

Campbell also hit out at those he said spread untrue rumours that Manhattan was struggling and was close to collapse.

"The bathroom industry is a really close knit community," he said. "And there are some great people that I've known for many years who have been really supportive. But I've been really disappointed by how some of our competitors have used this moment of instability to foster rumours. You wouldn't believe how many phone calls I've been getting on a weekly basis from customers saying 'I've just had the so-and-so rep in here and they've said you're going bust.'

"We've been going through a change of shareholder, that's all that's really been going on. We've had some great support from customers and there's been some genuine good will for Manhattan, but there have been a lot of people trying to undermine us too."