Pension scheme deficit forces BI Composites into administration

A MIDLANDS manufacturer which can trace its roots back to the 1950s has called in administrators. Some 120 employees’ jobs are at risk.

However, the firm is still trading and the administrators are confident it can be sold as a going concern.

BI Composites Limited, which operates from sites in Halesowen and Cannock, has a defined pension scheme deficit of more than £4m.

The firm is a manufacturer and distributors of moulded components made from composite materials and employs around 120 across its two sites.

Kevin Murphy, Craig Povey and Brian Hamblin, partners and restructuring specialists at accountancy firm Chantrey Vellacott DFK, have been appointed administrators.

The company is a wholly owned subsidiary of BI Group plc, which is continuing to trade as normal and is not affected by the administration.

Hamblin, a partner in Chantrey Vellacott DFK’s Birmingham office, said BI Composites is a strong business and is trading as normal as a search for a buyer is underway.

“The company has built a strong reputation as one of the leading manufacturers in the moulded composites sector,” he said.

“It supplies large manufacturers in the automotive industry primarily in the UK but also in Europe and other parts of the world, including Bentley, Jaguar Land Rover and Lotus.

“One of the major factors in the business going into administration is due to the company being saddled with a defined pension scheme deficit of more than £4m.

“The underlying business however should be profitable and this is reflected in the fact we already have a number of parties interested in buying the business.”