|Cash flow problems put 700 jobs at risk.|
30 November 2007 – Major UK automotive moulder Ecomold went into administration yesterday putting 700 jobs at risk across three sites. Following an application by the directors, James Money and Mark Orton of KPMG Restructuring were appointed as joint administrators to the company.
Ecomold, formerly known as LinPac Automotive before its purchase by the Barr family in 2004, is a leading supplier of automotive components to many global automotive brands and operates plants at Dunstable, Southend and Scunthorpe.
According to the administrators, the competitive nature of the sector has led to significant trading losses and administration was requested because of cash flow problems, despite the best efforts of the management.
James Money said: “With its highly skilled and experienced workforce Ecomold has a fantastic reputation in the marketplace and we expect a lot of interest in the business.
“As a result, we are confident that we can continue to trade the business with a view to securing a quick sale. We welcome any party who may have an interest in acquiring the business to make early contact with us.”