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.

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