Auto Windscreens goes into administration

Auto Windscreens, which replaces and repairs windscreens in the UK, has fallen into administration.

Deloitte partners Matt Cowlishaw, Chris Farrington and Dominic Wong, have been appointed administrators to the company.

Auto Windscreens serves major motor insurers, fleet businesses and private individuals and operates a network of 68 fitting centres across the UK, 550 mobile units, and a distribution centre in Aston, Birmingham and a central call centre.

The company is headquartered in Chesterfield, and employs around 1,100 staff and had an annual turnover of £63m.

The company had been implementing a major operational improvement plan, changing the business model to deliver significant operational efficiencies. The main aspects of the restructuring plan had been put in place.

However, delays in implementation of the IT systems, coupled with lower than anticipated revenues in the final quarter of 2010, had led to cash flow pressures, according to Deloitte.

The company had been in extensive discussions with a number of interested parties to provide the funding required to recapitalise the business. However, before a recapitalisation could be agreed, the company received a winding up petition from a large creditor and also had notice from one of its major customers that it was terminating the contract.

Administrators are continuing urgent discussions with interested parties and have approached the major customers to seek urgent funding in order to trade the business in the short term whilst a sale is pursued.

The majority of employees have been asked to cease work and await the outcome of the Administrators’ discussions.

Joint Administrator Matt Cowlishaw, partner in Deloitte’s Reorganisation Services team in the Midlands, said: “It is extremely disappointing to see such a well-known business enter administration. The company worked extremely hard to try and recapitalise the business, but unfortunately this could not be achieved in the time available.

“We are now in urgent discussions with the key stakeholders and interested parties in an attempt to save the business. We have provided the employees with full briefings and have set up a dedicated employee hotline to help them.”