More than 1,000 jobs in jeopardy as Auto Windscreens collapses

Van drivers and logistics workers at Auto Windscreens are among 1,154 employees who face redundancy after the firm collapsed into administration yesterday.

The Chesterfield replacement windscreen and repair firm - No.2 in the market behind Autoglass - appointed Matt Cowlishaw, Chris Farrington and Dominic Wong of Deloitte as joint administrators of the business on 14 February.

Lower-than-anticipated Q4 2010 revenue and poor cashflow were cited as forcing the company into administration. No redundancies have been made yet, but the bulk of Auto Windsreens' 1,154-strong workforce were sent home. Of these, 120 work at the Aston DC; 48 at the Chesterfield factory; 648 are wider support network staff (including van drivers); and 338 work at the Chesterfield head office.

A number of clients, including fleet businesses and motor insurers, have been informed that the majority of operations have ceased with immediate effect.

Deloitte says Auto Windscreens, which had an annual turnover of £63m, had been leading a recovery plan, but was hit by delays in implementing IT systems, coupled with lower-than-expected revenues in the final quarter of 2010, which led to cash-flow pressures.

Talks had been held with a number of parties to secure funding, but a final blow came when one of its major customers ended its contract. Auto Windscreens then received a winding-up petition from a large creditor.

Administrator Cowlishaw says: "It is extremely disappointing to see such a well-known business enter administration. The company worked extremely hard to try and recapitalise the business, but unfortunately this could not be achieved in the time available. We are now in urgent talks with key stakeholders and interested parties in an attempt to save the business.

"We have provided the employees with full briefings and have set up a dedicated employee hotline to help them understand their position."

Deloitte says all the company's vans are leased.