A County Durham-based glazing and aluminium facade specialist has entered administration, with the loss of all 43 employees.
After activity at Architectural Glass and Aluminium Limited (ARGLA) came to a halt earlier this month, Gareth Harris and Lee Lockwood of RSM Restructuring Advisory were called in as joint administrators.
ARGLA directors stated in its most recent accounts that the firm had undergone “a period of investment and growth”, but Construction News understands that the firm had reportedly incurred losses on a major, undisclosed contract, and had been embroiled in a legal dispute with an unnamed main contractor.
Established in 2019, ARGLA specialised in the design, manufacture and installation of architectural facades and other products, mainly for commercial clients. Recently completed projects, announced last month, included facades on two buildings, DC3 and DC5 (pictured), for GMI Construction Group at the Integra 61 warehouse/logistics complex in Bowburn.
Ongoing work included a residential block in Dingwall Road, Croydon, and the Colchester Northern Gateway leisure centre in Essex.
In 2021 the firm moved its manufacturing operation from Leadgate, near Consett, to Jade Business Park in Murton, as part of an expansion strategy that saw staff numbers more than double in two years.
In its most recent accounts for the 15-month period to 30 September 2022, ARGLA reported net assets of £7,410, compared with net liabilities of £940,000 in its previous financial year.
“In essence, the company has shut,” Harris said.
“We sought to transfer contracts across and deal with subcontractors to try and make sure that contracts get completed,” he added, but these efforts proved unsuccessful.
Harris told CN: “It was at very short notice [that RSM was called in], which is always more difficult.”
He said that he and Lockwood were appointed on 5 April, adding: “At that point, in the absence of any funding being available, we made all the staff redundant. We’re just trying to realise as much as we can of the assets for the creditors and trying where we can to transfer [in-progress] contracts.”
Aspect Facades Limited – another facade firm based in the North East – went under in February with the loss of 35 jobs after it was derailed by cost increases and delayed projects that had restricted cashflow. Its demise came after the County Durham firm was named last year as one of the region’s fastest-growing small businesses.
In a statement of proposals last month, the administrators for Aspect, working for FRP Advisory, said that record turnover of £5.6m in the year to 31 March 2022 and “large profitable new contracts” were offset by significant project-start delays that put pressure on Aspect’s cash position, which worsened in early 2024.
The administrators stated that despite discussions and meetings with interested parties, no offers were received for the business.
