Insolvency practitioners SFP have completed the sale of Conservatory Outlet dealers 5 Star Windows and Conservatories based in Kidderminster.
The company was placed into administration in July after suffering from cash flow problems which SFP blamed on the worsening economic conditions and the suffering construction sector.
SFP also mention that they have out three other glazing firms in administration so far this year.
However, the sale of the business as a going concern means that eight jobs have been saved and that the company will hopefully continue to trade. It what guise it will remain to be seen.
The reason why I think this is significant is that as far as I’m aware this is the first Outlet dealer to go into administration since the franchise began. Does it mean something or does it mean nothing at all? Does it mean that the franchise business model and all that comes with it such as the website, marketing material, product options and so on isn’t working? Or is it a one-off case of a company struggling with the harsh economic conditions? Or is it a mix of both?
Another point to ponder over is if Conservatory Outlet had a support system in place to help dealers in such situations or was it a case of letting that company get on with it themselves?
I guess only time will tell. The happy news though is that the company has been sold, jobs have been saved and now the new owners, whoever they are, can now focus on rebuilding the company and work towards better times and success.
Other articles on the story can be found here:
http://www.kidderminstershuttle.co.uk/news/9847046.Jobs_saved_at_Kidderminster_based_windows_firm/
http://www.creditman.biz/uk/members/news-view.asp?newsviewID=16279
http://www.newsrt.co.uk/news/jobs-saved-at-kidderminster-based-windows-firm-669542.html
It is not good news when any company goes down, but it is good that jobs have appeared to have been saved. However, looking at the accounts of the past few years it seems the company had been struggling for some time and had legal charges against their assets (3 in 2011, including Conservatory Outlet Ltd). Times are very difficult, and we should also remember the creditors. How much have they been hit for? Will it send one of those down? The domino effect (and the loss of jobs elsewhere) is rarely considered in these situations, and the changes in… Read more »
They trade on our patch, not the first company to fail under this leadership, why do large suppliers keep trading with people that owe them money?
The only way to clean up our industry is from the top down.
If someone stole money from you in the street you would go to the police, yet if a director steels your money you trade again with them!. Why?
Looks as though they’re back up and trading already, with much the same people at the helm, but under the trading style of 5 Star Conservatories Windows & Doors as opposed to the previous 5 Star Windows & Conservatories
(See their latest advert on page 23 at the following link)
http://edition.pagesuite-professional.co.uk/Launch.aspx?referral=mypagesuite&refresh=Bn412S0jw08F&PBID=a690df71-05bc-43b3-99ad-64f02908e430&skip=
Frankly, I’m really surprised that a company like the Conservatory Outlet had anything to do with them in the first place – makes you wonder if sufficient due diligence and background checks were performed?
Should FENSA and CERTASS say no to membership after second or third time of director failure ? Therefore protecting the public.
none of them have the balls to do it , becausesome fool will always supply them because they are greedy or desperate and desrve to stung ,
FENSA AND CERTASS is nothing to with finance only ensuring building regs is maintained . Damn fine idea tho.
its to early for typing
As for the little dig at conservatory outlet i m pretty sure any dealings matthew glovers company had were all completely above board
Sad news to see another ! double glazing company go down. In the end it looks bad on all of us as we all get tarred together. The Conservatory Outlet are not immune from economic pressures like all of us. The next twelve months will be telling for everyone in this industry. People in glass houses (no pun intended)
Allan upvcspares4repairs
i am a conservatory outlet dealer and i know 5 star well, they were and are a very reputable company, times can be difficult but all I know is that as a network dealer I have had far more back up and help from Conservatory Outlet than I’ve had from any other supplier I’ve worked with. I think people sometimes need to know all the facts before having opinions on whether or not Conservatory Outlet model works or not.. i know it has definately worked for me especially as I’ve grown my business year on year when others around me… Read more »
A company update from 5 Star! It’s almost a year since 5 Star Windows and Conservatories Ltd was sold as a going concern to a well-known local construction company. The transition, thanks to SFP was a huge success, which saw a smooth transition of all the employees and ensured that no customers lost deposits or failed to have their installation completed. The Consumer Protection Association found in an independent twelve month report that one hundred percent of 5 Star customers said they were happy with their installation and would recommend the company. 5 Star has never looked better; with a… Read more »
Thanks for the update Richard! Ive been wondering what he latest was!