Safestyle, the Bradford-based PVC window and door manufacturer and retailer, has gone into administration today. The move impacts around 750 employees and has reportedly made around 680 people redundant.
The company had a large manufacturing facility in Wombwell, near Barnsley, and operated from a network of 42 sales branches and installation depots across the UK. “In common with a number of companies across the home improvement sector, Safestyle UK has had to navigate a number of pressures which have impacted trading, including high cost inflation, ongoing economic uncertainty and fragile consumer confidence,” a restructuring firm representative reported. “In recent months, these pressures have been exacerbated by an unseasonally warm September, which has dampened customer demand.
“In response to these challenges, the group engaged with stakeholders to explore a range of options to help strengthen its balance sheet, including a capital injection or new financing, a potential sale of the shares in the subsidiaries and/or a sale of the business and assets of the subsidiaries. Unfortunately, despite interest being shown by a number of parties, a solvent solution was unable to be found, and the directors took the difficult decision to seek the appointment of administrators.
“The company directly employees circa 750 employees. Regrettably, with trading ceasing upon the appointment of the joint administrators, the majority of staff have been made redundant. Circa 70 members of staff have been retained by the administrators in the short term to assist with an orderly wind down of the business.”
Rick Harrison, managing director at Interpath Advisory, said: “This will be particularly devastating for Safestyle’s employees, as well as the many self-employed contractors who worked on behalf of the company. Our immediate priority will be to provide support to those impacted by redundancy, including supporting them in making claims to the Redundancy Payments Service, where relevant.” As the business has gone into administration, Safestyle customers have been advised that orders will no longer be fulfilled.
In the October edition of GGP magazine, Andrew Scott issued a warning that reflected on Safestyle’s half-year report. To read that article, click this link.
