Administrators Alvarez & Marsal have been appointed administrators to auto OEM paint supplier Paintbox Birmingham in England.
Paul Flint and Mark Firmin of Alvarez & Marsal said in a statement they had been appointed joint administrators to the supplier, a subsidiary of Paintbox Group.
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Paintbox Birmingham is based in Kings Norton and will continue to trade in administration as Alvarez & Marsal "explores all options for the business, including seeking a potential buyer", the statement said.
The company employed 140 people at the date of the appointment.
"The role of the joint administrators is limited to Paintbox Birmingham and does not extend to the wider Paintbox Group which continues to operate as normal," the statement said.
Paul Flint, managing director, A&M, said: "The U.K. automotive industry has faced significant challenges in recent years following a downturn in car orders, which is now compounded by COVID-19.
"Paintbox Birmingham has invested around GBP6m in its paint lines in recent years and, as a result, delivers high quality products to its customers in the automotive and other sectors.
"We are hopeful of being able to find a solution which will secure the company's future.
"We understand that this is unsettling news for the company's employees and will be doing all we can to support them over the weeks ahead."
On its website, Paintbox describes itself as "predominantly a specialist Tier 1 supplier to UK-based OEMs" which "typically require low-volume modules painted in body colour to the highest standard. The work usually involves a high degree of complexity and customisation".
"We also have the technical capability and operational flexibility to deliver long run, high-volume customer programmes in a highly competitive environment."
Its customer list includes multiple auto OEMs with operations both in the UK and abroad and also various Tier 1 suppliers.
