Glazing firm enters administration just weeks after Safestyle settlement
Bradford-based Niamac Developments, trading as SafeGlaze UK, has today been placed in administration, with 132 people losing their jobs.
Niamac Developments has ceased trading immediately and all of its employees have been made redundant.
The firm has recently been in a legal battle with its competitor, Bradford-headquartered listed firm Safestyle. Safestyle recently won its legal claim against Niamac for alleged trade mark infringement, passing off, misuse of confidential information, malicious falsehood and various other matters.
As part of the settlement, SafeGlaze UK agreed to change its trading name and re-brand fully within an agreed period of time. Earlier this month, Safestyle UK denied it was looking to takeover Niamac. At the time, it said it was “considering certain other arrangements” with key stakeholders in Niamac that could benefit Safestyle’s business and accelerate its recovery.
Rob Adamson, Mike Kienlen and Mark Ranson, Insolvency Practitioners at Armstrong Watson LLP have been appointed as Joint Administrators of Niamac.
The Bradford-based double glazing company designs, manufactures and installs UPVC windows and doors and has eight sites across the country.
Director, Phil O’Malley, said: “It is with deep regret that Niamac Developments Limited t/a SafeGlaze UK has today entered into Administration with Rob Adamson of Armstrong Watson being appointed Administrator.
“The business grew far in excess of the management’s and stakeholders expectations and more importantly than our key suppliers could service. Unfortunately the level of financial support required increased significantly because of the Company’s growth and the lack of constant supply from the main supplier of products.
“I would like to express my gratitude to the staff and our customers. I personally want to apologise to those suppliers adversely affected by the board of directors’ decision.”
Lead Administrator, Rob Adamson of Armstrong Watson LLP, said: “I can confirm that I was appointed Joint Administrator along with my fellow partners Mike Kienlen ad Mark Ranson over Niamac Developments Limited t/a SafeGlaze UK today. We have been working with the management over the last few days following the decision by the owner and stakeholders not to increase their exposure beyond the current level which is in excess of £11 million.
“The inability to secure materials to facilitate minimum weekly sales levels has adversely affected the Company’s cash flow and because of the uncertainty it was felt by the director that trading could not continue. It is with regret that 132 staff have been made redundant today and the Company has ceased to trade.”
The Administrators are actively looking to dispose of the assets including the Company’s order book.
Separately, Safestyle has been struggling; issuing a profit warning earlier this year and reporting a severe 164% drop in pre-tax reporting figures for the first half of this year. The listed firm has had to pay a Health and Safety Executive fine and has been under increasing competitive pressure in the marketplace.
