Over 500 jobs at risk as metals manufacturer faces administration again
More than 500 jobs are at risk after a specialist metals manufacturer posted a notice of intention to appoint administrators (NOI), just three months after the firm was rescued out of administration.
Wharfside Industrials was formed in September after Ensco 1 acquired the collapsed Fablink group and its subsidiaries in seven pre-pack deals. As part of the deals, all 521 employees were transferred to the purchaser.
TheBusinessDesk.com understands that Shoosmiths was the firm’s representative when issuing the NOI and EY is poised to be appointed as administrators for Wharfside as well as four Fablink subsidiaries in Wolverhampton, Evenwood, Luton, and Northampton.
The manufacturer specialises in the production of metal pressings, operator cab assemblies, fuel and hydraulic tanks and complex structures, as well as “clean build” of vehicle assemblies for some of the world’s largest OEMs within the automotive, truck, off-highway, power generation and material handling industries.
Together, it trades across six sites in Wolverhampton, Evenwood, Luton, Durham, Brixworth and Northampton.
Chris Pole and Ryan Grant from Interpath Advisory were appointed to the group in September, which comprised Fablink Limited (FL), Fablink Tank Systems Limited (FTSL), Streamline Panels and Assemblies Limited (SPAL), Fablink Group Holdings Limited (FGHL), Fablink Cab Systems Limited (FCSL), Fablink Group Holdings Limited (FGHL) and Fablink Toolspec Limited (FTL).
Over the last two years, Fablink suffered from a number of adverse events which caused challenges to liquidity. This included delays in the receipt of grant funding to support its relocation to a new site in Wolverhampton and the insolvency of one of its customers, which caused a significant bad debt.
