Written by: Keith Tully
Published: 6th January 2017
A manufacturing operation trading as Colson Castors and Colson International has been entered into administration after being unable to maintain a viable financial position in recent weeks.
The two companies employ a total of around 80 people in the West Midlands but their future employment is now in jeopardy.
Primarily importers and makers of castor products for use in the retail, medical and industrial sectors, both Colson Castors and Colson International were well-established in their field and as an employer in the West Bromwich area.
However, it’s been revealed that the two companies’ parent firm, the Colson Group, has been required to provide funding to prop up what have now been loss-making businesses for the past several years.
“The Colson Group is no longer in a position to continue to fund these losses on an on-going basis,” a statement given on behalf of the companies has explained.
“Without access to funding the directors of the companies had no alternative other than to place the businesses into administration.”
Administrators have now been appointed to manage the financial affairs of both Colson Castors and Colson International, with no decision apparently having yet been made regarding the issue of redundancies at the two businesses.
“We will be urgently contacting potential interested parties, key customers and suppliers over the coming days whilst reviewing the position and assessing the options for the business,” the newly appointed administrators are quoted as saying by Insider Media.
“We are not announcing any redundancies at this time but we will need to keep this under review based on levels of support and any interest in the business.”
A large majority of the two companies’ workforce were employed at a single site in the Hill Top area of West Bromwich, with a small number of employees based at a separate site in Christchurch.
Losses were being recorded and financial problems weathered by Colson Castors and Colson International in recent months and years despite the fact that they collectively turned over more than £12 million during the full year to the end of December 2015.