Tue, 18 Jul 2017 | ADMINISTRATION
A company that supplies Ikea and Easyjet is set to enter administration, with 50 staff expected to be made redundant.
Coilcolor, a Newport-based producer of coloured steel panelling, was previously hit with a £3.7 million bill in November after a factory flood damaged machinery and halted work, BBC News has reported.
The firm’s managing director, Dean Proctor, said that an administrator would be appointed on Tuesday.
Proctor said: "I'll be talking to staff this morning and by the end of the day we'll be in administration.
"I spoke to them yesterday and they all know what's coming. It was a very viable business if we didn't have this flood."
One of two independent coil coating firms in the UK, Coilcolor produces panels in Ikea and Easyjet’s iconic blue and orange respectively, as well as products for B&Q, Costa and Porsche. The firm also contributed materials to Google’s new headquarters, built recently in Amsterdam.
Flooding in 2017 disrupted operations at Coilcolor’s Newport site for some time, which Proctor claims originated in land owned by the Welsh Government next to his business and despite him raising concerns about drainage in 2015.
Though the Welsh Government previously arranged for the beleaguered business to be given a £300,000 loan through Finance Wales to cover damages and staff wages, Coilcolor claim that not all of the money was released and criticised the loan’s interest rate of 11 per cent.
But the Welsh Government said it had not received any official claim from Coilcolor or its insurers.
Since then, Coilcolor’s bank overdraft was slashed, leaving the company struggling to pay bills and staff wages.
Jayne Bryant, the Welsh Assembly Member for Newport West, said: “I have spoken to the cabinet secretary about this and sought assurances that the Welsh Government will do everything within their power to support staff through this very difficult time."
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