A long-established Birmingham car parts supplier has gone bust with the immediate loss of 78 jobs after falling victim to the recession.
Andy McGill and Richard Philpott from KPMG LLP have been appointed joint administrators of Textile Assemblies in Small Heath at the request of the directors.
Textile Assemblies is a manufacturer in the automotive supply chain, developing and producing cut and sewn assemblies for use as vehicle interior trims. The company employed 172 people at its site in Small Heath.
Will Wright, a KPMG Restructuring director who is leading the team, said: “It is very unfortunate that the well-documented difficulties facing the automotive sector have impacted so significantly on this business.
“Immediately following our appointment we regrettably needed to make 78 employees redundant as the forecast order book could not sustain the company’s current levels of employment. We are endeavouring to trade the residual business while we consider the options available to us.”
Textile Assemblies supplies cut fabric and plastic moulding for vehicle doors to the automotive industry. The firm offers a wide range of products and processes to a range of markets, including commercial vehicle, materials handling, medical and leisure.
Among its biggest customers are Midland-based Intier Automotive and International Automotive Components.
Its products are used in cars made by Jaguar Land Rover, Nissan and Toyota.
It is understood that managing director John Pendleton is still with the firm.
The group, a privately-owned second tier manufacturer, has grown rapidly since it was established in 1986. By 2008 it was employing 200 people at a hi-tech 108,000 sq ft factory. But the Small Heath firm has been hard hit by the vicious downturn affecting the car sector and its crippling impact on the supply chain, which has decimated its order book.
Automotive industry expert Dave Leggett said companies further down the supply chain had been among the hardest hit by plummeting new car sales.
Mr Leggett, editor of www.just-auto.com, said: “This year we are certainly seeing a lot of automotive manufacturers who are facing serious financial difficulties. The collapse of the car market in the UK and Europe is obviously something that is coming through to affect companies further down the supply chain. Many are having problems with cash flow and it is not surprising that we are seeing some companies go under.”
“It can be harder for the suppliers because they are smaller and it can be more difficult to access financial help from the banks, unlike the vehicle manufacturers who have global scale to fall back on. The tier two and tier three suppliers are finding themselves in particular difficulty with cash flow through this difficult period.”
* Parties interested in acquiring the business should contact the administrators as soon as possible on 0121 609 5884.