37 jobs have been saved after Administrators at Baker Tilly secured a rescue of the retail and trade divisions of Warmseal Windows (Newcastle) Limited.
Steve Ross and Allan Kelly were appointed Administrators on 20 August 2015 immediately selling the retail and trade business to LTWF Limited.
Warmseal had a turnover of approximately £14m and operated across the commercial, trade and retail segments of the double glazing market.
Steve Ross, Restructuring and Recovery Partner at Baker Tilly in Newcastle and one of the Administrators said ‘Warmseal was recently hit by a substantial bad debt and an unexpected VAT liability which caused a cash shortfall. Unfortunately this could not be managed within the working capital available to the company leaving the directors with little alternative but to appoint Administrators.
‘The business as a whole has been actively marketed which saw a number of interested parties express an interest for portions of the company. We are delighted that we have been able to secure a sale of the retail and trade divisions of the company to LTWF Limited which has helped retain 37 jobs and ensured that retail customers who have paid deposits will have their contracts completed.’
A spokesman for LTWF Limited said ‘We are excited to have acquired certain parts of Warmseal which has a long established and well respected name within the North East home improvement market. We intend to further invest in Warmseal to enhance the range of products, quality and service provided to the existing and new customers to ensure that Warmseal is the first choice for windows, conservatories and doors within the North East.’
Haines Watts Chartered Accountants and Mincoffs Solicitors advised LTWF Limited.