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Colourclad in Warrington in administration
1:08pm Thursday 26th April 2012 in News
TWENTY members have staff have been made redudant after a business went into administration.
Colourclad Limited, which was based on Palatine Industrial Estate, Causeway Avenue, went into administration earlier this month.
The business fell vicitim to ‘fierce competition’ for contracts within the construction sector according to Beever and Struthersm the administrator.
Charles MacMillan, partner and head of corporate recovery at the Manchester based firm, said pressure on proft margins also had an effect.
He added: “ “Over the past couple of years competition for work in construction has grown increasingly fierce and Colourclad had to adapt by quoting for larger contracts but at increasingly regressive margins.
“The business had previously concentrated on smaller refurbishment projects but the amount of this work was also badly affected by the onset of the economic downturn.
“I am proactively seeking a buyer for Colourclad but the overly competitive nature of this sector means that sadly, yet another business is likely to fail.
“All the employees were made redundant because there is no profitable work in progress to complete.”
The industrial cladding specialist was hit worse when it was recently forced to write off an estimated £350,000 when Wrexham-based civil engineering and maintenance contract firm Barnhill Construction entered administration itself.