We always knew 2024 was going to be another tough year, and not long into this new year we have a notable administration in the name of Scotland-based Evoframes.
The company was placed in administration with Begbies Traynor in January but has since been sold which has seen 76 jobs saved. But as we know, pre-pack administrations, as this one was, means suppliers are left out of pocket.
Evoframes statement
In a statement on it’s website, Begbies Traynor published this statement on the sale of Evoframes to Rooms & Views:
Following the appointment of Ken Pattullo and Jamie Taylor of Begbies Traynor as joint administrators of Livingston-headquartered Evoframes on 17h January 2024, a sale of the business and assets has been completed, saving all 76 jobs.
Established in 2020, Evoframes is a major supplier of fenestration products to trade customers across Scotland, including trade counters, builders, joiners and window fitters. Offering a wide range of bespoke uPVC windows and doors, it also has its own dedicated fleet of trucks delivering direct from its factory to the customer.
Unfortunately, the company suffered from rising interest rates, together with reduced customer demand and increasing raw material costs, resulting in it becoming unviable.
Following an accelerated M&A process to find a buyer for the business, a pre-packaged sale to Rooms & Views took place, with the deal saving all 76 jobs at the Livingston factory. Based in Buckley, North Wales, the buyer is a long-established UK uPVC window manufacturer.
Ken Pattullo, managing partner at Begbies Traynor in Scotland, said: “Unfortunately, like many businesses, Evoframes was severely impacted by higher interest rates as well as increasing costs over the last year. We are pleased to have completed a sale which sees the business continuing in the hands of new, but experienced owners and providing a more secure future for the 76-strong workforce.”
View the original statement here: https://www.begbies-traynorgroup.com/news/press-releases/jobs-saved-as-livingston-upvc-windows-business-bought-out-of-administration
The combination of rising interest rates, lower consumer demand and higher material costs were blamed on the cause of the failure of the business. It is true that the sector has faced a wide number of issues all at the same time. Not something that always happens. What is has perhaps done is expose some companies who were financially less than secure. Although the sector went through what can only be described as a boom post-lockdown, what followed was one hell of a hangover. Spiralling energy and material price inflation, coupled with rising labour costs and then a solid slowdown in consumer demand brought everything back down with a bump.
Getting over those financial conditions was never going to be swift. We still face many of last year’s problems this year as well. So whilst some companies have been able to flex their muscles early this year, like Brisant Secure and Endurance, there will still be a significant number of companies who face an incredibly tough time. You only need to look at the construction sector and note that insolvencies there are at their highest since 1993. So we know its a tough market out there.
The question is whether we are going to see more high-profile collapses like we did in 2023, or if 2024 won’t quite be as brutal.
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