Published On: Thu, Nov 16th, 2023

Over 500 jobs axed as UK Window Group placed into administration

The UK Window Group, a leading national window and door manufacturer and supplier, has officially entered administration, leading to the loss of over 500 jobs. With a storied history that dates back to the 1950s, the company has been a prominent provider of fenestration products and services to a wide client base. This news follows the closure of the company’s extrusion division, Duraflex, in early September. CEO Matthew Scoffield remarked that despite the determined efforts of both management and financiers to save the businesses, the industry’s challenges proved insurmountable. He informed WalesOnline: “This is undeniably a challenging and uncertain time for all involved. While we’ve settled all pending salaries, we are working closely with our financial partners to provide additional financial support for forthcoming severance packages. We wish to express our profound gratitude to our employees for their unwavering dedication and continued commitment.”

A statement released by administrator Teneo Financial Advisory read: “Despite their utmost efforts to save the business, the Directors made the tough decision to place the company into administration. Immediately after the appointment, the joint administrators secured a sale of the majority of the Sevenday trade counter branches nationwide, ensuring they continue their usual operations and saving 91 jobs. Furthermore, the administrators have retained 73 employees to aid in the administration proceedings.”

Teneo announced that 496 positions at the UK Window Group facilities in Treorchy, Llwynypia, Williamstown, and Taff’s Well—all situated in Rhondda Cynon Taf—would be terminated. An additional 67 roles will be abolished at their locations in Tewkesbury, Gloucestershire, and Biggleswade, Bedfordshire.

The UK Window Group embarked on a restructuring strategy due to the departure of a significant client last year. This strategy, bolstered by supplementary lending from its financiers, was already underway. As the administrator elucidated, it encompassed a cost-saving initiative, the streamlining of manufacturing facilities, and the termination of the Tewkesbury extrusion operation in favor of a third-party extrusion vendor.

“Production at the Tewkesbury site concluded in September. The recent economic volatility, sparked by heightened consumer price inflation, escalating interest expenses, and a subsequent dip in consumer confidence, has seen housing developers decelerate their construction projects. Simultaneously, retail window businesses have witnessed a slump in demand, as homeowners postpone discretionary expenditures on property renovations. This chain of events has dramatically diminished the demand for the company’s offerings, leading to insurmountable losses and financial needs.”