Fri, 12 Apr 2024 | ADMINISTRATION
Architectural Glass and Aluminium Limited (ARGLA), a County Durham-based architectural glass and aluminium company, has ceased trading and is set to fall into administration.
ARGLA is a specialist in designing, manufacturing and installing architectural glass and aluminium and primarily works for commercial clients. However, the company suffered unanticipated losses on a major contract and was also dealing with an ongoing legal dispute with one of its main contractors.
This resulted in the company incurring a large working capital requirement and, despite the efforts of directors to alleviate these issues, they were unable to secure additional financial support.
As a result, the firm has ceased trading, with Gareth Harris and Lee Lockwood of RSM Restructuring Advisory LLP set to be appointed as joint administrators. The proposed administrators will seek to maximise realisations for the company’s creditors and are liaising with its management team and suppliers to alleviate the potential impact on ongoing contracts.
Once the appointment of the administrators is confirmed, all of the company’s 45 employees are expected to be made redundant.
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."
In the firm’s last available accounts at Companies house, covering the period from June 1 2021 to September 30 2022, the company’s directors said that the business had seen “a period of investment and growth”, including moving to a newly constructed factory and office site in Seaham, County Durham.
At the time, the firm’s fixed assets were valued at £335,336 and current assets at £936,290, with net assets amounting to £7,410, compared to net liabilities of nearly £940,000 in its previous accounting period.
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