UNITED KINGDOM — Auto Windscreens Reportedly Closes After Nearly Two Weeks in Administration
February 25, 2011
Deloitte LLP, which was appointed as administrator of the United
Kingdom-based Auto Windscreens last week, announced this afternoon
that it would be closing the company after nearly two weeks as administrator,
according to local
reports. The company was placed in administration on February
14, after it “received a winding up petition from a large
creditor and also had notice from one of its major customers that
it was terminating the contract, according to its administrator,
Admiral Insurance had announced in December 2010 that it had awarded a three-year contract to Auto Windscreens, but just a month later—in January—the company announced a three-year contract with a competitor, National Windscreens (also based in the United Kingdom).
Last Friday, Deloitte officials said they
had received “a number of enquiries from parties expressing
interest in the Auto Windscreens business.”
According to information from Deloitte, Auto Windscreens “had been implementing a major operational improvement plan, changing the business model to deliver significant operational efficiencies.”
"However, delays in implementation of the IT systems, coupled
with lower than anticipated revenues in the final quarter of 2010,
had led to cash flow pressures,” wrote Deloitte upon taking
the role of administrator. “The company had been in extensive
discussions with a large number of interested parties to provide
the funding required to recapitalize the business. However, before
a recapitalization could be agreed, the company received a winding
up petition from a large creditor and also had notice from one of
its major customers that it was terminating the contract.”
Auto Windscreens has been known for its innovation, and had
introduced an iPhone appthe first of its kindthat
could check windshield chips for repairability last year.
Though the UK’s Insurance Times that a company called
Trifords Limited has
acquired the company’s brand name, glassBYTEs.com™/AGRR
magazine has not been able to confirm this. Officials from
Deloitte had not yet responded to request for comment, and had not
posted an updated statement at press time.
Auto Windscreens had 68 locations in the United Kingdom and 550 mobile units, a distribution center in Aston, Birmingham, and a central call center headquartered in Chesterfield, and employed around 1,100. The company was headquartered in Chesterfield, and employs around 1,100.
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