Window maker Safestyle has collapsed into administration, putting almost 700 staff out of work, after it revealed last week it had failed to secure emergency funding.
The Bradford-based PVCu replacement window and door maker appointed Rick Harrison and Will Wright from Interpath as administrators, to recover any remaining value in the business for creditors. The company has been hit by a higher interest rate environment, which has made it harder for homeowners to complete major refurbishments.
The final nail in the coffin for the business was September’s heatwave, when 30-degree temperatures “dampened consumer demand”.
“In response to these challenges, the group engaged with stakeholders to explore a range of options to help strengthen its balance sheet, including a capital injection or new financing, a potential sale of the shares in the subsidiaries and/or a sale of the business and assets of the subsidiaries,” Interpath said. “Unfortunately, despite interest being shown by a number of parties, a solvent solution was unable to be found, and the directors took the difficult decision to seek the appointment of administrators.”
The company already ceased trading. Before entering administration, it had 750 staff, but all but around 70 have now lost their jobs.
The GMB Union, which represents the majority of staff, said workers were “completely let down by mismanagement from the very top of the business”
Harrison said: “These are really challenging times for companies across the home improvement market. After seeing strong sales during the COVID lockdown periods, many companies are seeing trading being impacted by the cost-of-living crisis and soaring costs.”
Safestyle’s shares, listed in London, were suspended last week. In 2017, they traded at as much as 317p per share, valuing the business at more than £400 million. At the time of suspension, they were trading at just 0.3p, implying a valuation of less than half a million pounds.
