1,042 redundancies as Auto Windscreens closes
Auto Windscreens, which has a major distribution hub in Birmingham, is to close after liquidators were unable to sell the business. Almost 1,100 employees have been made redundant.
Joint liquidators from Deloitte - Chris Farrington and Matt Cowlishaw - said that despite an intensive marketing period no party made an offer for the £63m turnover business as a whole.
Farrington said: "Our focus at the outset was to seek funding for a trading period and to run an intensive marketing period in an attempt to save the business as a going concern.
"We approached the major customers to seek urgent funding but unfortunately none of these customers were able to assist in the circumstances. Whilst the intensive marketing process resulted in over 90 expressions of interest, no party made an offer for the business as a whole. In the absence of any funding and no going concern offer, we have had no alternative but to close the business, leading to 1,042 staff being made redundant."
A sale to Markerstudy Group, of certain of the assets of the company, including the freehold properties and 19 of the leasehold properties, has been completed which will enhance realisations to the company’s creditors.
Cashflow problems were named as one of the causes of the business’s failure.
The company was the UK’s second biggest windscreen repair business.
