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Auto Windscreens, which has a major distributions hub in Birmingham, is facing closure. Administrators from Deloitte have now been appointed to manage the business and property of the windscreen repair company, leaving 1,100 jobs at risk.

The Chesterfield-headquartered company, which operates 68 fitting centres and 550 mobile units across the country, revealed the news via its website.

Cashflow problems have been named as the cause of the business’s failure.

Up to 1,100 jobs are now at risk if a buyer is not found for the company, which has an annual turnover of about £63m.

In a statement on its website, the company said it had “temporarily suspended” all operations.

The company is the UK’s second biggest windscreen repair business. It had been in “extensive discussions with a large number of interested parties to provide the funding required to recapitalise the business”, said Deloitte.

However, before a recapitalisation could be agreed, the company received a winding up petition from a large creditor and also had notice from one of its major customers that it was terminating the contract.

M J Cowlishaw, D L Z Wong, and C J Farrington, of Deloitte, have now been appointed joint administrators of Auto Windscreens and now manage the affairs, business and property of the company.

Deloitte said that the company had been implementing a major operational improvement plan, changing the business model to deliver significant operational efficiencies. The main aspects of the restructuring plan had been put in place.

However, delays in implementation of the IT systems, coupled with lower than anticipated revenues in the final quarter of 2010, had led to cashflow pressures.

Matt Cowlishaw, partner in Deloitte’s reorganisation services team in the Midlands, said: “It is extremely disappointing to see such a well-known business enter administration. The company worked extremely hard to try and recapitalise the business, but unfortunately this could not be achieved in the time available.

“We are now in urgent discussions with the key stakeholders and interested parties in an attempt to save the business. We have provided the employees with full briefings and have set up a dedicated employee hotline to help them understand their position.”