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Situl Raithatha of restructuring firm Springfields was appointed Administrator of Schlegel Automotive Europe Limited on 4 October 2012.

In mid-October, the Administrator announced that operations had been stabilised and that the business was continuing with the remaining workforce. Agreements had been reached with customers to allow for orders to continue to be processed. Since then, work has been on-going to sell the business and assets as a going concern.

Regrettably, despite extensive efforts over the past 7 weeks it has not been possible to secure a purchaser for the business as a going concern. Although efforts are continuing to find a buyer, it has been necessary to put in place contingency plans to allow key customers to exit the plant in an orderly manner. Due to the latest developments it has unfortunately been necessary to make further redundancies with the workforce being reduced from 115 to 82.

The Administrator, Situl Raithatha said “Together with the Schlegel management we have worked tirelessly to explore all feasible options for the business. We have had contact with a significant number of parties who expressed an interest. We have however been unable to secure a sale.”

“I would like to thank the management, the employees, contractors, customers and suppliers for their support during the past few weeks. Without their commitment we would not have been afforded the opportunity to continue the business and explore a going concern solution.”

Any closure process is likely to take several weeks and on present indications it is expected that production will continue at least into the New Year.

26 November 2012

END

For all media enquiries, please contact:

Situl Raithatha
Springfields
0116 299 4745
situl.r@springfields-uk.com
http://www.springfields-uk.com

This press release was distributed by ResponseSource Press Release Wire on behalf of Springfields Business Recovery & Insolvency Ltd in the following categories: Motoring, Business & Finance, Public Sector, Third Sector & Legal, for more information visit https://pressreleasewire.responsesource.com/about.