One of Coventry’s largest employers, Covpress, has gone into administration, putting 800 jobs at risk.
The vehicle supplier, namely selling Jaguar Rovers, has called in the administrators due to ‘urgent funding issues’ but, as of yet, no redundancies have been made. Following September quarter day, it is likely the company was unable to meet its rent liabilities and so to prevent further issues, took action and appointed administrators.
A spokesperson from the administrator, Grant Thornton, said:
“The business has faced a numbers of challenges which has impacted on its growth strategy and unfortunately the company had to be placed into Administration due to significant and urgent funding issues.”
“We are urgently reviewing the financial position of the business and will seek discussions with customers and suppliers around their support which will be critical to any outcome.”
“We expect significant interest in this growing business and with that support, we will look to pursue a sale or rescue of the company. No redundancies have been announced at this time and we would encourage any expressions of interest in the company.”
Unfortunately, it is common for struggling businesses to go into administration around rent quarter day. This is because once a company goes into administration, it no longer needs to pay its rent quarterly in advance, but the rent will accrue from day to day. This helps ease cash flow.
If you are an employee of the business, please listen to the video below as it will tell you your rights as an employee of an insolvent business. There is a link at the end of the video to the Government website which expands further on what you need to know. We are not involved in the administration and questions should be directed to Grant Thornton who are handling the administration.