Quinn Radiators, of Newport, has fallen into administration, with Grant Thornton as the appointed administrators.
280 employees were made redundant with immediate effect on Monday morning.
Some have said that the way this was handled by the company, has been terrible. A fork-lift operator found out about his companies’ affairs, only by a news site – he had no inkling and has still heard nothing whatsoever from his employers. Another worker has spoken out about the fact that no notice was given, and staff are not to be paid their wages. Great sympathy lies for the many loyal employees, who are now being laid off. It has been regarded as an ‘’ unexpected, out of the blue’’ event.
The company have two production lines with the capacity to produce 3.5m domestic radiators a year. In 2016, the Welsh Government gave the company a £3m loan, to help create and safeguard jobs.
Administrator, Alistair Wardell, explains how the directors had been searching for a buyer for the company, so that UK jobs and business could remain. However, these discussions ended last week, with no successes found and unstainable losses continuing instead.
‘’In recent years, the company has faced the ongoing challenge of remaining competitive in the face of increasing raw materials and cheaper imported brands.’’
It is often the case that companies that go into administration do so very abruptly and employees are given little warning. The problem would appear to be that once a buyer couldn't be found the company had to close quickly. The legal position is that the directors cannot make the situation any worse for creditors so even one extra day of trading and costs incurred to inform employees could be deemed as making the situation worse for other creditors. The employees will receive what is owed to them through the redundancy payments office whereas HMRC, trade creditors and landlords will receive what is left after the secured creditors get repaid. The admininstrators will have 14 days to decide whether to take on any employee contracts. For more information on who gets paid when a business goes into administration see this guide
The priority is to work with those retained, to achieve the best outcome for creditors.
On Wednesday there will be an event to help those who have lost their jobs. Alternatively, see our guide for redundant employees here.
Categories: What is administration