
A major windows and doors manufacturer in the UK is set to cut hundreds of jobs soon. Based across three major sites in South Wales, UK Windows and Doors was placed into administration on 3rd October, 2023. The seven decade old business is expected to eliminate over 500 positions. These include jobs at its three locations in Rhondda Cynon Taf: Treorchy, Llwynpia, Williamstown, and Taff’s Well.
There will also be further job reductions across 4 more sites including Tewkesbury, Gloucestershire, and Biggleswade, Bedfordshire. The firm’s chief executive, Matthew Scoffield, cited recent economic uncertainty and cost inflation as major reasons for this administration. The rising costs of raw materials and supply chain issues have severely impacted the industry.
Founded in 1953, the UK Windows and Doors Group ranks among the UK’s largest PVCu window and door manufacturers. They also have multiple fabrication sites and dedicated glass manufacturing units, all situated in South Wales. The company has been producing 10,000 frames and 15,000 glass units per week primarily in Wales. Some employees have been with the business for over two decades.
Teneo has appointed administrators to take over the business proceedings. Their analysis states that high consumer price inflation, rising interest costs and declining consumer confidence has slowed down build programs, which in turn has led to a steep drop in demand for retail windows.
Rhondda Cynon Taf Council leader, Mr. Morgan, expressed concern about the situation and the loss of over 500 jobs. The Welsh Government and many local authorities and the Welsh have extended their support for the affected employees, as the number of layoffs surpass more than 500.
Staff reactions
The company’s staff was taken aback by this news. Employees were initially informed of supply chain issues, which made sense due to recent changes within the company. However, they were abruptly told not to report to work on Friday, and the news of the administration was announced through the local council announcement. The lack of prior notification left many employees feeling shocked and betrayed.
Workers are currently awaiting details of their redundancy packages. Many are struggling to come to terms with the sudden turn of events, especially those with young children and mortgages.This has added to the feeling of uncertainty about the business’s future. The lack of communication from the company has left employees angry and disappointed, as they grapple with the unexpected loss of their jobs.
This presents a unique opportunity for investors seeking distressed business acquisitions. The company’s 70-year history and extensive client and supplier network could enhance existing portfolios in a similar industry. A strategy built on a firm dedication to employee well-being will serve as a pivotal starting point in this case. By addressing employee concerns, executing a viable turnaround plan, and upholding ethical standards, this opportunity holds the potential for long-term profitability.
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