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Auto Windscreens in administration

Auto Windscreens has gone into administration.

The Chesterfield-based company, the UK's second biggest windscreen repair firm, said it had temporarily suspended all operations.

The administrators from accountancy firm Deloitte said there were no funds with which it could carry on trading.

A note on the Auto Windscreens website reads: "Regrettably due to the administration of the company all operations have been temporarily suspended. We hope to resume shortly."

Deloitte said one of Auto Windscreen's major customers terminated its contract and a major creditor served it with a winding up petition.

This was on top of cash flow problems caused by lower-than-expected sales revenues at the end of last year and delays in putting in place a new IT system, which was part of a major restructuring.

Auto Windscreens had already been in talks about raising additional funds, but an agreement could not be reached in time.

The administrators said they would be continuing these discussions.

Deloitte joint administrator Matt Cowlishaw said: "The company worked extremely hard to try and recapitalise the business, but unfortunately this could not be achieved in the time available.

"We are now in urgent discussions with the key stakeholders and interested parties in an attempt to save the business. We have provided the employees with full briefings and have set up a dedicated employee hotline to help them understand their position."

Deloitte has also asked for people interested in buying the business, or part of it, to get in touch at autowindscreens@deloitte.co.uk.

Auto Windscreens has 68 fitting centres, 550 mobile units, a call centre and a distribution centre in Aston, Birmingham. 

Part of Aviva until 2008, it was bought by Peter Fox, its managing director, and Moguntia Invest, a German investment fund controlled by Christian Daumann, in late 2009 from Arques Industries, a German private equity house.

 

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