Thu, 22 Mar 2018 | ADMINISTRATION
A Blackburn-based producer of aluminium products has entered administration after an exacting contract dragged down the company’s finances.
S.G. Aluminium, a firm that not only produces but also installs architectural aluminium windows, doors, curtain walling and shop fronts, is expected to make the majority of its 33-person workforce redundant as a result.
Its clients included some of the country’s biggest building contractors, including Carillion, Balfour Beatty Construction and Interserve. It also provided components for Manchester City’s new stadium, the Etihad Stadium, and Blackburn Rovers’ ground at Ewood Park in the form of curtain walling and aluminium doors.
Recent pressures on the company were prompted by falling sales and cash flow pressures arising from one particularly onerous contract which chipped away at the company’s reserves, meaning that it had little ability to meet its capital requirements to continue operating.
The firm’s directors have been considering various restructuring options since the beginning of the year, when such troubles became apparent.
They were unable to come up with a satisfactory solution, however, and called in Paul Flint and David Costley-Wood from KPMG’s restructuring practice to oversee its administration.
One of S.G. Aluminium’s staff will stay on for a short time in order to assist the administrators to package up the company.
Flint said that the company’s fate was sadly inevitable in the face of “mounting cash flow pressures”, and that administration was the only alternative left to S.G. Aluminium’s directors.
He added: “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."
This family-owned business is a non-core subsidiary specialising in the production of diverse food packaging foils, boasting a strong customer base and a significant export ratio of over 60%.
This well-established company excels in the fabrication and installation of premium aluminium, UPVC, and composite window and door systems, serving both commercial and residential markets.
This established trade-only fabricator and distributor in the UK offers a unique opportunity to acquire a business renowned for its rapid lead times and strong referral-driven sales pipeline.
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