350 jobs at risk as car parts group enters administration

Car parts group Covpress Assembly has collapsed into administration, putting 350 jobs at risk.

Administrators from Deloitte hope “the administration process might now draw out interest in a sale of the business”.

It creates uncertainty for staff at the Coventry-based company, although no redundancies were announced on Friday.

Its owners, the Yongtai Group, bought UYT in June 2015 and renamed it Covpress Assembly, linking it in name to metal pressings company Covpress, which it already owned.

However Covpress went into in September 2016 and was bought by Liberty Group four months later, saving 740 jobs. The company was then rebranded as Liberty Pressing Solutions.

Yongtai Group had been seeking a buyer for the £40m-turnover Assembly business, but when this failed “the directors had no alternative but to place the company into administration”, the administrators said.

They said that efforts to grow Covpress’s customer base has not generated the anticipated profitability.

Deloitte’s Matt Cowlishaw, who was appointed as joint administrator alongside Dominic Wong, said: “The business operates from a state of the art facility, with a skilled workforce, capable of working in partnership with global automotive companies.

“Meanwhile, we are continuing to trade the business and work with customers to fulfil existing orders.”

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