Uniglaze Go Into Administration
The tough times keep on coming for the double glazing industry. This time Norfolk is the recipient of the bad news. Uniglaze, based in Norwich in East Anglia has been forced to call in the administrators after struggling to keep the business going after a big restructuring in 2011.
Uniglaze has a turnover of over £21 million and employs, or rather employed, 285 staff at two sites. But the administration has brought the loss of 88 jobs. Chris Pole, a director at appointed administrators KPMG, had this to say:
“The company has struggled for a number of years in the wake of the severe downturn that has hit the UK construction sector and wider economy. While market conditions have been very challenging, management and creditors worked together to address the business’ financial problems by agreeing a company voluntary arrangement (CVA) in April 2011.
“In spite of the company’s efforts to find a resolution to its problems via a CVA, the company’s cashflow has been substantially impacted by a further decline in turnover and the insolvency of a key customer. “In the context of a persistently difficult market for businesses supplying into the construction sector, the company has been unable to restructure further or to attract additional funding, leaving the directors with no other option than to seek the appointment of administrators.”
With this administration, there seems to be some oddities. For example, it is rumoured that the company is able to pay back their creditors 70p for every pound they owe, far higher than any normal administration. Why? There are also a couple of rumours as to the ‘real’ reason why the company has been placed in administration. I suppose with these things we will never know the true reason if there is a different reason.
One thing is for sure, KPMG have done very well this year when it has come to double glazing industry company closures. Will be a bumper year for them!
Hopefully KPMG will be able to find a buyer for the business soon. A company with a turnover of £21million and a long history should really be an attractive buy. Hopefully the business isn’t carrying much debt and there is the right staff there to help aid the business through this rough patch. Obviously job losses are something nobody wants.
You can find an alternative report on the administration of Uniglaze here: http://www.edp24.co.uk/business/norfolk_firm_uniglaze_goes_into_administration_with_the_loss_of_88_jobs_at_its_new_costessey_base_1_1656682