Published: 22nd April 2016
A manufacturing business that has been operating in the Midlands for over 100 years is heading for administration after failing to turnaround an unsustainable financial position in recent weeks and months.
Froude Hofmann traces its roots back as far as 1877 but now faces an uncertain future with more than 100 employees of the business having lost their jobs in recent days.
The company has been based in Worcester since 1903 and has long been in the business of making and supplying a variety of engine testing systems.
Its directors recently filed notice of their intention to enter the business into administration following a “period of significant losses”.
A relative lack of future orders on its books is also reported to have contributed to the decision to enter Froude Hofmann into administration, with dozens of jobs being shed in the process.
“The majority of staff have been laid off while we decide on the most appropriate course of action which could include, among other options, the continuation of ongoing operations and a possible sale of the underlying business and assets,” statements from company spokespersons explained.
Administrators are now expected to consider the options open regarding the future of the company, which supplies products primarily to automotive, marine, industrial and gas turbine markets in the UK, as well as elsewhere across Europe and around the world.
The carmakers of Jaguar Land Rover and Bentley have both been among the company’s customers in recent years but its financial position has nonetheless become unsustainable in recent months.
In January of this year the company appointed a new managing director and a new finance director at the same time in a move that it was hoped would help to turn around the business and improve its profitability.
David Watts, the new managing director, and Kath Clarke, the new finance chief, were welcomed on board by the company’s owner and charged with “concentrating on developing the top line sale, profitability and cash flow of the business” upon their joint appointment at Froude Hofmann on January 6th this year. Real Business Rescue provide director advice online, over the phone, or in-person at one of our 78 UK offices or a place of your convenience.