Chamberlain, a Black Country engineering group based in Walsall, has initiated a liquidation process that may jeopardise approximately 160 jobs. The business specialises in castings and machining operations. Chamberlain cited the issuance of a winding-up notice by its primary power supplier as the catalyst for this action.

In a statement released to the stock exchange, the publicly listed company disclosed ongoing discussions with its creditors and major shareholders regarding its financial problems. Despite implementing cost-reduction measures and raising prices for wholesale customers across the group, Chamberlain found itself facing mounting pressure from creditors and its bank. 

In a post-pandemic economy, it also experienced further declines in sales revenue and has been unable to secure the requisite funding. Consequently, the board of directors has reluctantly decided to commence an insolvency process. While there have been no further comments yet, the business has said it will release more information as appropriate.

This development follows the decision on May 7 to suspend trading of Chamberlain’s shares on the AIM exchange. Chief Executive Kevin Price expressed profound regret on behalf of the board, acknowledging the challenging decision to embark on the insolvency process and extending sympathy to affected staff, shareholders, and other stakeholders.

This is just one more indicator of financial distress within the UK’s current economic position. To stay updated with the latest opportunities in the distressed business market and capitalise on them swiftly, stay tuned to Administration List.