Automotive engineering firm Pneuride has collapsed into administration after nearly 20 years, putting over 50 jobs on the chopping block. The company provided advanced electronic control systems and air suspension components from its Coventry base before shuttering.
Founded in July 2007, it employed 55 staff before mounting financial challenges forced it to cease trading in September, reports suggest. Pneuride filed for administration following a sustained period of soft trading and mounting pressure on cash flow and profit margins, as per The Herald.
Joint administrators appointed
Richard Harrison and Chris Pole from Interpath were appointed as joint administrators on September 30. Mr Harrison said: "The automotive sector continues to undergo significant transformation and adapting to such change - amidst significant competition - adds further pressure on businesses in the supply chain that are already struggling to maintain margins and profitability."
He added: "Pneuride was no exception, and couldn't continue in its current form. As we see through an orderly wind down of operations, we're focused on supporting employees through this difficult period." While the majority of staff have been laid off, some have been temporarily retained to help wind down operations.
Sale considered but administration chosen
Pneuride's directors reportedly considered other options including marketing the business for sale, but ultimately decided administration was the only option. James Portwood, director at Interpath, said: "Anyone with an interest in acquiring the business and assets should contact the Interpath team as soon as possible."
Mounting cost pressures including from the war in Iran have put a cross-section of British businesses under pressure, with the number of companies collapsing into administration soaring at the start of the year. Alongside administrations and liquidations, major household brands have drastically cut their portfolios in response to rising operational costs, with retailers including Quiz and Claire's forced to close their entire brick-and-mortar presence.
Wider business impact
Other firms left with no choice but to close branches this year have included Primark, Poundland, River Island, Revolution, Brew Dog and Franco Manca. UK-based travel companies including Firefly Holidays, Gold Crest Holidays and Travel Bespoke LTD have also entered administration or liquidation, alongside four airlines, Ascend Airways, EcoJet Airlines, Zenith Aviation Limited and European Cargo.
Some businesses are bucking the trend and are planning to expand their national reach, however, including Aldi, Superdrug, B&M and Marks & Spencer. M&S's growth strategy includes opening 10 new supermarkets in London this year and carrying out major refurbishments on six existing branches, while B&M is set to open eight stores before Christmas.
