Zolfo Cooper, administrators to UK-based parts firm Wagon that entered receivership last week, has announced redundancies as part of a wind-down of the Brownhills manufacturing facility.
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Wagon Industrial Limited, subsidiary of Wagon plc, has made 292 employees redundant. This announcement does not affect the other divisions of Wagon.
Since their appointment on 8 December, the administrators have been trading the Brownhills business in an attempt to secure a sale as a going concern.
However, they say the ongoing downturn in the global automotive industry has ‘continued to place Wagon’s customers under relentless pressure and unfortunately this has resulted in the loss of major business from the key Brownhills customers’.
The business has ceased trading with immediate effect and the administrators are now exploring options for the sale of the plant and equipment.
Alastair Beveridge, Partner, Zolfo Cooper commented: “Understandably, the current trading conditions have made it very difficult to secure an ongoing commitment from Wagon’s customers, and we have therefore been left with no option but to close the Brownhills facility. Regrettably, this has resulted in the redundancies we have announced today.
“We appreciate this is very disappointing news for all of those who have worked so hard to save this business, and we would like to thank them for their unwavering support throughout the administration process.”
See also: UK: Wagon heads into administration
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