Paul Flint and David Costley-Wood from KPMG’s restructuring practice in Manchester have been appointed as joint administrators of S.G. Aluminium Ltd, a fabricator and installer of architectural aluminium windows, doors, curtain walling and shop fronts, which has ceased trading with the loss of around 30 jobs
The business operated from leasehold premises in Blackburn and suffered from falling sales and cash flow pressures arising from an onerous contract, which detrimentally impacted upon its ability to meet its working capital requirements. Consequently, the company had been considering its restructuring options.
The directors were unable to find a solvent solution and made the decision to place the company into administration. One member of the company’s 33 employees has been retained for a short period to assist the joint administrators in carrying out their duties.
Paul Flint, associate partner in KPMG and joint administrator, said: ‘As a result of mounting cash flow pressures, the directors felt they had no alternative but to place the company into administration. Our focus now will be on finding a buyer for the business and realising assets for the benefit of the company's creditors, together with providing support to those staff who have been made redundant.’
Separately, Paul Dumbell and David Standish from KPMG’s restructuring practice have been appointed joint administrators to a family motor business made up of three trading companies based in North Wales, which has collapsed with the loss of nearly 70 jobs.
Slaters of Abergele Ltd, Slaters of Ruthin Ltd and Slaters North Wales Car Centre Ltd, sold new and used Nissan and Citroen cars from a site in Abergele, with a second site in Mochdre used primarily for servicing and repairs. The business employed 74 people.
Paul Dumbell, director at KPMG and joint administrator, said: ‘In recent months, the group has experienced severe cash flow pressure driven by continued trading losses, a downturn in new car sales and restrictions on used car finance. This has resulted in facility limits being reached and missed payments to the company’s creditors.
‘With no prospect of an upturn in trading, it is our intention to commence a managed wind down of the business. Regrettably, we have therefore had to make 68 members of staff redundant, with the remaining staff being retained in the short term to assist us with the closure of the sites.’
The group has another entity, Slaters North Wales Ltd, which operates from sites in Colwyn Bay, Caernarfon and Anglesey. This company is not in administration.
Report by Pat Sweet
