Rhondda Cynon Taf: More than 500 job losses after major employer goes into administration

A Valleys windows company has entered into administration with more than four hundred workers in Wales facing 'immediate redundancy'.

UK Windows and Doors Group Limited employs hundreds between its four sites in Rhondda Cynon Taf.

496 jobs are going across sites in Treorchy, Llwynypia, Williamstown and Taff's Well, with 73 workers being retained as part of the administration process.

The company has been trying to find a new buyer or investor for its business in Tewkesbury which has collapsed and provides raw materials for the Welsh-arm of the company.

Cllr Andrew Morgan, leader of RCT council told ITV Cymru Wales that the job losses "couldn't have come at a worse time" with winter food bills incoming.

Ian Ward has been working at the site in Treorchy for the last seven years and he said he was "absolutely devastated".

He said: "We're all going to feel the financial pinch of them closing the factory the way they have lots of money is being taken out of the local community."

Teneo Financial Advisory Limited has appointed Richard Hawes and Matt Roe of Teneo Financial Advisory Limited as joint administrators of UK Windows and Doors Group Limited.

In a statement, a spokesperson said: "recent economic uncertainty due to high consumer price inflation, rising interest costs and the associated reduction in consumer confidence has led to house builders slowing down their build programmes and retail window companies experiencing a fall in demand as homeowners delay discretionary spending on the refurbishment of their properties.

"This has resulted in a further large reduction in demand for the Company’s products, leading to losses and associated funding requirements at an unsustainable level."

One of the administrators operating on behalf of Teneo, Richard Hawes, said, “The well-publicised downturn in the UK housing market and residential refurbishment sector over the last 18 months has caused a substantial decline in sales year on year and ultimately has led to the need for this difficult decision to place the Company into Administration. 

"We are pleased that we have been able to preserve a number of jobs in the seven day business; however, it has been necessary to make immediate redundancies.

"The Administrators are communicating with all employees and working closely with the Redundancy Payments Service to ensure employees can claim their entitlements as soon as possible. We continue to work with management and their funders and understand that supplementary payments will be provided to employees, details of which will be announced in the next few days.”

UK Windows and Doors Group Limited, Matthew Scoffield, CEO, said: "the management and funders have worked hard to save the business over recent months' but that the 'headwinds facing the sector have proved to be too strong".

He said: "Since the business was acquired five years ago, the team has worked tirelessly to turn the business around and up until recently it continued to trade profitably. 

"Despite the cost cutting measures implemented and the injection of significant further capital from our lenders in recent months, the decline in sales felt across the industryas well as the strain placed on the finances of the project to move to a third-party profilesystem has meant the business became financially unsustainable. 

“We appreciate that this is a very difficult and uncertain time for all involved and whilst allarrears of wages have been paid, we are also working jointly with our funders to provideadditional financial support to supplement future redundancy payments. We would like totake this opportunity to thank our employees for all their efforts and ongoing support. “

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