Hundreds of Midlands jobs threatened as Auto Windscreens collapses

UP TO 120 jobs are under threat at Auto Windscreen’s distribution depot in Birmingham, after the company went into administration.

The staff at the depot in Aston are among 1,100 now fearing for their jobs after Deloitte partners Matt Cowlishaw, Chris Farrington and Dominic Wong were appointed administrators yesterday to the £63m turnover replacement windscreen specialist.

Auto Windscreens, the number two player in the repair market, serves major motor insurers, fleet businesses and private individuals.  The Chesterfield-headquartered company operated a network of 68 fitting centres across the UK, 550 mobile units, the Birmingham distribution centre and a central call centre.
 
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, said Deloitte in a statement, but delays in implementation of the IT systems, coupled with lower than anticipated revenues in the final quarter of 2010, led to cash flow pressures.
 
The company had been in discussions to provide the funding required to recapitalise the business, the statement said. 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.
 
“Management were unable to continue to trade and were faced with no alternative but to request the appointment of Administrators,” said Deloitte.

“Unfortunately, there are no funds currently available to be able to continue to trade the business.  The administrators have therefore approached the major customers to seek urgent funding in order to trade the business in the short term whilst a sale is pursue,” said Deloitte.
 
Most workers have now been sent home.

Joint administrator 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.”