Durham-based Architectural Glass and Aluminium Limited (ARGLA) has ceased trading and is heading into administration. Specialising in manufacturing architectural glass and aluminium for commercial clients, ARGLA faced unexpected losses on a significant contract and was embroiled in a legal dispute with one of its main contractors.
Despite the directors' strenuous efforts to tackle the challenges, including a substantial working capital requirement, they could not secure additional financial support. This led to the unfortunate decision to cease trading. Gareth Harris and Lee Lockwood of RSM Restructuring Advisory LLP are poised to be appointed as joint administrators.
Gareth Harris, partner at RSM and joint administrator, said, "Such a large drop in profit on two large contracts has significantly and rapidly impacted the viability of the business, and the directors had to take the difficult decision to appoint administrators at short notice."
About the proposed administration
The proposed administrators, Gareth Harris and Lee Lockwood, are committed to diligently working to maximise returns for the company's creditors. They are actively collaborating with the management team and suppliers to mitigate any potential impact on ongoing contracts, ensuring a fair and equitable resolution for all parties involved. Unfortunately, upon confirmation of the administrator's appointment, all 45 company employees are expected to be made redundant.
In the latest accounts filed at Companies House, covering the period from June 1, 2021, to September 30, 2022, the company's directors reported a phase of "investment and expansion." This included relocating to a newly constructed factory and Seaham, County Durham office site, marking a significant milestone in the company's growth and success.
The firm's fixed assets were valued at £335,336 during this period, with current assets at £936,290. The net assets totalled £7,410, significantly improving compared to the nearly £940,000 net liabilities reported in the previous accounting period.
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