Updated: 28th August 2015
Warmseal Windows, a specialist windows and conservatory fitter based in Newcastle-Upon-Tyne, has been rescued from administration after falling into a financial crisis in recent weeks.
The company was forced into and then sold out of administration with 37 jobs being saved in the process.
However, a total of 73 other staff members were made redundant after Warmseal became unable to fend off its creditors.
Administrators were appointed to manage the company’s affairs on August 20th after directors received an unexpected VAT bill they were unable to pay.
“Warmseal was recently hit by a substantial bad debt and an unexpected VAT liability which caused a cash shortfall,” appointed administrators explained in a statement.
“Unfortunately this could not be managed within the working capital available to the company leaving the directors with little alternative but to appoint administrators.”
Having been forced into administration, Warmseal was marketed for sale and a number of parties apparently expressed an interest in acquiring the company.
“The business as a whole has been actively marketed which saw a number of interested parties express an interest for portions of the company,” administrators said of the situation.
The eventual buyer was LTWF Limited, which is based in County Durham.
LTWF has said that it will be keeping on 37 members of Warmseal’s workforce and has moved to reassure the company’s retail customers that their contracts will be completed if they’ve already paid deposits.
“We are excited to have acquired certain parts of Warmseal which has a long established and well respected name within the North East home improvement market,” a spokesperson for LWTF said.
“We intend to further invest in Warmseal to enhance the range of products, quality and service provided to the existing and new customers to ensure that Warmseal is the first choice for windows, conservatories and doors within the North East.”
According to its administrators, Warmseal generated revenues worth around £14 million in its most recently completed financial year, with its customers coming from each of the trade, retail and commercial aspects of the double glazing market. We have an extensive network of 83 offices offering confidential director support across the UK.