127 jobs lost as auto supplier stalls in administration

Some 127 people have lost their jobs at Kings Norton-based Paintbox Birmingham, a paint supplier to the automotive industry, after administrators failed to find a buyer for the firm after it slipped into administration.

Documents seen by TheBusinessDesk.com suggest that Paintbox has been loss-making since 2017 due a drop in demand from customers, operational issues and the installation of a new paint line.

These losses had been paid for by support from the company’s shareholders but the Covid-19 pandemic meant that this support was withdrawn.

Paul Flint and Mark Firmin from Alvarez & Marsal were appointed administrators to Paintbox Birmingham at the end of June.

Administrators sats that secured creditors are uncertain – although ABN Amro Asset Based Finance has been paid in full but £1.2m owed to Barclays and £6.8 owed to BGF will be dependent on the sale of plant and machinery. There will be a dividend paid to preferential creditors while unsecured creditors will also recevive a dividend.

Trade creditors are owned £9.8m in total.