Alufold Direct Limited, an aluminium door and window manufacturer based in Blackburn, UK, has been facing financial difficulties for some time now, during which a potential sale of the business ultimately fell through. Attempts to secure alternative funding also failed, leading the directors to conclude that the company could no longer continue operating in its current form.
As a result, most of the 100 employees working at the aluminium door manufacturing company were laid off, typically due to restructuring, downsizing, or financial difficulties. Mark Hodgett, joint administrator and partner at FRP, said, "Alufold Direct is a recognised player in the UK aluminium fenestration market, but unfortunately, the business became increasingly constrained by liquidity pressures."
The company tried to find an alternative solution but failed, so the directors decided they couldn't keep the business running and had to call in administrators. On 10 June, Mark Hodgett and Philip Armstrong of FRP Advisory were appointed as joint administrators of Alufold Direct Limited, an aluminium door and window system producer.
"Calling in administrators" refers to a company entering administration, a legal procedure triggered when a business cannot pay its debts and is considered insolvent. In this situation, a licensed insolvency practitioner, known as the administrator, takes control of the company's operations. Their role is to manage the business, explore options for restructuring, sell assets, or, if necessary, liquidate the company to repay creditors and, where possible, preserve parts of the business.
The administrators are currently seeking a buyer for Alufold Direct and its assets. However, most of the company's workforce has been made redundant, with only a small team retained to support the administration process.
"Despite the best efforts of the management team to secure a solvent sale with strong interest in the business they couldn't complete the transaction in time. We are now focused on preserving value and exploring a potential sale and would encourage any interested parties to get in touch with us at the earliest opportunity," added Mark Hodgett.
Established in 2014, Alufold Direct operates from a combined manufacturing and customer support facility in Blackburn. The site features a modern Aluminium Glazing Design Centre, which includes a trade counter, showroom, and technical support hub. Before entering administration, the company employed approximately 100 people.
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Image Source: Alufold website
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