EAG And Multifab Ltd Enter Administration

In a blow to the UK construction and building products sector, English Architectural Glazing Ltd (EAG), prominent façade and curtain walling specialists, has officially entered administration. Its sister company, Multifab Ltd, which supplies aluminium curtain walling and fabrication services, has also filed for administration, amplifying the disruption across the architectural glazing supply chain.

Both companies cited increasingly difficult trading conditions and an inability to secure new contracts as key reasons for their collapse. Administrators from Begbies Traynor have been appointed to handle the administration process.

Industry Challenges Prove Too Much

In a statement released by the board of directors at EAG, the company acknowledged the severe challenges that had mounted over the past year:

“The challenging conditions in the UK construction industry have meant EAG has not been able to secure new contracts and trade profitably, despite considerable investment. The Company sought new investment, but this process was unsuccessful. As a result, the Board of EAG has applied to the Court for Begbies Traynor to be appointed as administrators.”

This latest development comes after a difficult trading period in which the business attempted to stay afloat amid rising materials costs, labour shortages, and delayed or cancelled construction projects. According to EAG’s most recent financial accounts, which cover the year ending December 31, 2023, the company turned over £21.7 million but posted a pre-tax loss of £290,000—figures that reflect the tightening margins and instability affecting many in the sector.

The Multifab Connection

Multifab Ltd, based in Cambridgeshire, operated as EAG’s manufacturing arm, providing in-house fabrication of bespoke curtain walling systems, shopfronts, doors, and windows. The closure of both firms in quick succession has raised immediate concerns about potential job losses and the ripple effect across ongoing and planned construction projects.

Multifab had built a reputation over decades as a reliable, high-quality aluminium systems fabricator and was a preferred supplier for several major commercial projects. Its failure underscores how even well-regarded and technically capable firms are vulnerable in the current economic environment.

While precise figures around staffing levels and the number of jobs at risk have not been released, it’s understood that both companies collectively employed several hundred staff across operations, administration, project management, and fabrication roles.

Market Reaction and Industry Impact

News of the administration has been met with concern within the architectural glazing and commercial façade industry. EAG had been involved in a wide variety of landmark and high-profile projects over the years, including healthcare, education, and public sector buildings. As such, its collapse raises questions over the completion of current projects and the availability of specialist façade contractors in the near term.

Suppliers and subcontractors may also feel the fallout, particularly if significant sums are owed. In a sector where tight cash flow and long payment terms are already the norm, further disruption could put added strain on smaller businesses reliant on EAG and Multifab for contracts and pipeline revenue.

The Path Forward

Administrators Begbies Traynor will now undertake an urgent assessment of both companies’ financial positions, liabilities, and potential recovery options. This could include the sale of assets, restructuring, or, if interest emerges, a potential buyer acquiring parts of the business.

Stakeholders across the supply chain, including clients, main contractors, and suppliers, are being advised to engage with the administrators as quickly as possible to clarify project statuses and financial exposure.

For now, the collapse of EAG and Multifab Ltd marks another significant moment in what has been a turbulent period for UK construction. As firms continue to battle the ongoing economic headwinds, it remains to be seen how many others will be able to weather the storm.