Bromford Industries and its subsidiary Accrofab have called in administrators .
The companies, which are suppliers to the aerospace, defence, and power generation industries, called in Interpath Advisory as administrators on Thursday, March 9.
There is no immediate threat to the two firms’ 309 staff.
The firms, which have locations in Leicester, Derby, and Alcester, specialise in the precision manufacturing and fabrication of components and engine parts.
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Both businesses, according to joint administrators Ryan Grant and Chris Pole, have faced a number of challenges in recent times.
This includes rising raw material and energy costs, supply chain disruption, and the wider impact of the pandemic on demand.
In a statement, Interpath said: “While the facilities at Derby and Alcester were continuing to trade well, operational issues at the Leicester facility further exacerbated the liquidity challenges faced by the companies.
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“In recent weeks, attempts have been made to seek urgent additional financial support from customers in order for production to continue.
“After a series of productive discussions, the directors of the businesses have taken steps to protect the interests of creditors by seeking the appointment of joint administrators.
“This will allow the companies to continue to trade while the administrators seek buyers for the businesses and their assets.
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“All members of staff will be retained by the administrators to enable trade to continue.”
The administrators stated that Bromford Group’s US operations and businesses, including AeroCision and Numet, are continuing to operate normally and outside of the administration process.
Ryan Grant, managing director at Interpath Advisory and joint administrator, said: “Over the past 50 years, Bromford Industries has forged an excellent reputation as a tier-one supplier of fabricated and machined components to the aerospace, defence and power generation sectors.
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“We have been pleased with the positive conversations and financial support provided by customers in recent days, which has ultimately provided the businesses with a crucial lifeline.
“We’d also like to extend thanks to the companies’ employees for their support and understanding while this process has been underway.
“Our priority is now to seek buyers for the businesses and assets, and would urge any interested parties to contact us as soon as possible.”
Source: Business Live
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