There’s not a good time for people to lose their jobs, but the week before Christmas is about as bad as it gets. Unfortunately, we lost quite a few double glazing companies in the last week, with many people being made redundant.
I’d been tipped a week ago that a few companies had ceased trading in the North West. An article on the neBusiness website confirms that Arctic Windows in Newcastle has called in the administrators with 60 jobs at risk. This follows the failure of Gold Seal in Gateshead earlier in the month.
Arctic Windows had a turnover of £4.4m and had recently invested £500,000 in new machinery in their 42,000 sq.ft factory. One of the employees who has lost his job claimed he had not been paid for three weeks.
He said: “I turned down a job offer just a few weeks ago as the orders were still coming in. I believed we had a good future.
“It’s a terrible time for this to happen in the run-up to Christmas.”
Another article in the Westmoreland Gazette tells the story of building and joinery company – G. Middleton of Appleby – which has gone into administration. The company had a £2.5m turnover in conservatories, kitchens and bathrooms.
Hudson Grey, one of the directors at G. Middleton Ltd said the situation was “simply down to the economic climate.”
“The last year has been extremely difficult,” he said. “We’ve been awarded a number of contracts totalling about £1.5million which we just haven’t been able to start and we’ve carried quite a large staff in the hope that we could but we just haven’t been able to.”
Mr Grey said the directors are looking to restructure the business in the New Year.
“We didn’t plan this but it’s just come to a head and there was a clear realisation that we have got to get this sorted out,” he said. “We had too many men for the amount of work we had to go forward.”
“It’s not been a pleasant thing to tell the lads, especially at Christmas time. I mean the company has a good reputation and we do very good work, it’s just a pity there isn’t more of it.”
I must admit hearing what Mr Grey has had to say, it seems to me that redundancies should have been implemented at an earlier stage. Companies have got to scale back if they’re struggling to achieve sales, or alternatively try much harder to generate sales!
A leading specialist in top end conservatories, orangeries, windows and doors has also ceased trading in Leeds. Franklin Windows, a family business, has gone into liquidation which is a real shame as they have been pioneering top quality products in the UK.
I’m afraid to say I have also lost a couple of my trade customers over the last week. In both instances the key reason for their decline has been the inability to generate enough leads, and then convert the leads into sales. I feel for the directors and staff of both companies as I know they both tried their best to keep their companies trading through tough economic conditions.
It seems to be a mixed picture out there when I speak to my trade customers. Those that are happy to invest in marketing and have highly professional sales teams are booked up well into the New Year, and are confident about the prospects for 2009. Those that are cutting back on their marketing spend, and have demotivated, lazy, unprofessional sales staff will struggle to survive the next few weeks.
I expect to hear of far more casualties by the end of January, and the proactive, profitable companies still standing will pick up the pieces.
Tags: Orangeries
im afraid there will be many more on the way over the next 2 months.
whilst taking your point about generating leads into sales, the bigger challenge at the moment is getting the money in after the sale!
i think there will be some ‘big’ names going soon also, which always takes smaller guys with them.
Hi Pete
Retail customers generally pay on time as long as the job’s fitted right. I agree fabricators and suppliers to installers will struggle with bad debts from companies unable to adapt to changing market conditions.
I agree some big names will go soon, and take smaller companies with them. It happens both ways, too many small company failures can help bring down the big names. It’s a vicious circle.
RCG
Thanks for your kind words, its true that Franklin Leeds LLP has gone into liquidation as of today. Despite making good profits it was like a switch was tuned off on September the 1st. Orders went from a consitent £300k pcm to £80k! It shows the downturn is even affecting the high end. The Franklin family have bought the assetts, reduced costs and streamlined the business in order to offer its internationally renowed composite products direct to the trade at very competative costs. The new company will honour previous arrangements with clients and has contacted its suppliers to arrange working together in the new year.
Wishing all who read this all the best in the new year.
David Franklin
Hi David, glad to hear you are planning a return for Franklins – you are some of the GOOD GUYS – good luck and best wishes for 2009
Barry