Staff at a Blackburn manufacturing site have been made redundant after major glass supplier Clayton Glass entered administration.
A total of 290 employees working for the Roman Road company have been let go, alongside colleagues in County Durham and North Lanarkshire.
It comes after the business failed to meet financial obligations, which administrators say is due to high energy and raw material costs and an extended period of low demand.
James Lumb and Howard Smith from Interpath were appointed as joint administrators on September 18.
Mr Lumb said: “Clayton Glass has a proud history, having established itself at the heart of the British glass industry, and this transaction gives the business a platform to continue, secures some of its operations and, crucially, preserves a significant number of jobs.
"Unfortunately, we are seeing a similar story across a range of businesses supplying the housing market.
“The economics of the industry are incredibly challenging with high and rising fixed costs and soft demand which makes good businesses like Clayton unsustainable on a normal operating basis.
“The directors have fought hard to find a solvent solution, but regrettably not all of the business could be rescued in this market.
“We have a dedicated team on site supporting impacted staff through this difficult time with making representations to the Redundancy Payments Service.”
Founded in 1956, Clayton Glass is one of the UK’s leading glass manufacturers, specialising in the manufacture and supply of insulated glass units (IGU) to window, conservatory, door and glazing contractors.
The business employed 573 staff from seven sites across the UK.
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Interpath has said that despite efforts by the business to rescue itself in its entirety, with the support of external capital, no viable solvent solution could be found.
As a result, the joint administrators immediately secured the sale of the business and certain assets to Clayton Glass Group Limited, an entity backed by Clayton Glass’ former management team.
The transaction includes Clayton Glass' sites in Nottingham, Swindon, Canterbury and Dewsbury, with 283 staff transferring to the new business.
The Northern Echo reports that staff at the site in County Durham were told that they would go without their salary on the upcoming payday, stating that administrators would deal with the issue once they were appointed.
Clayton Glass was contacted for comment.
Have you been affected by this story? Get in touch via jack.stott@newsquest.co.uk
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