Around 45 jobs have been lost after a County Durham company collapsed into administration following a string of financial challenges.
Architectural Glass and Aluminium Limited, which traded as ARGLA, was first launched in 2019, specialising in designing, manufacturing and installing architectural glass features for shops, offices and schools. After two years of strong trading the firm needed more space, triggering a move from Consett to the Jade Business Park at Murton.
The expansion led to new jobs being created, with the business growing from eight to 45 employees. However, directors were forced to call in business advisors after suffering unexpected losses on a big contract, while they were also dealing with an ongoing legal dispute with a main contractor.
Administrators Gareth Harris and Lee Lockwood at RSM Restructuring Advisory LLP have been appointed at the business, which has now ceased trading.
The pair said the company’s loss on the big contract started a chain of events in which they needed a large amount of working capital. RSM said: “Despite significant efforts by the directors to alleviate those issues, they have been unable to secure additional financial support and have therefore taken the difficult decision to cease trading. The administrators are working to maximise the potential returns for creditors, and are liaising with the management team and suppliers to minimise the impact for ongoing contracts.”
The company’s most recent accounts, signed off in June 2023 and covering the year ended September 2022, suggest how quickly the company fell into cash troubles, as they highlight “a period of investment and growth”. In the accounts, the directors say they had invested in equipment and staff after moving to the new base, and had seen a “noticeable increase in both the level of tender activity and the company’s success rate in terms of winning contracts nationwide from both new and existing customers”.
RSM said that all staff were made redundant once the administration appointment was confirmed.
Gareth Harris, partner at RSM and joint administrator, added: “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.”
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