On 30 October 2023, H.P.A.S Limited (trading as Safestyle UK) filed for formal administration.
There has been speculation for some time on the fate of the windows and doors manufacturer, who have become a household name in the UK since starting in 1992. Earlier this year the company had reported a disappointing pre-tax loss of £6.7 million in its half-year accounts, leading to growing concern for employees, customers, and business partners.
Several attempts were made to salvage the business, including instructing debt advisors in early October to explore investment opportunities or selling portions of the business. On 26 October, Safestyle announced that it planned to sell the business, having failed to find new investors. While this outcome looked promising for employees and customers, the deal fell through a day later, and the company filed a notice of intention to appoint administrators.
This decision has left over 90% of employees redundant, with only 70 out of 750 employees being retained in the short term to wind down production. This will surely be a massive hit for the redundant employees, with the administration taking place shortly before Christmas.
However, there is good news for existing customers, with administrators negotiating a deal with Anglian Windows Ltd to sell Safestyle’s order book and some assets, so all pre-existing orders should still be fulfilled, albeit by another company.
This is a potent reminder that following Covid and in the current economic climate, even companies with significant market share and household names are not immune to economic pressures, the recent closure of Wilko will surely spring to mind.
Why are effective credit control procedures important?
This also highlights the importance of effective credit control procedures to minimise your exposure if one of your trading partners runs into financial trouble. Ensure your credit limits are up-to-date and informed and do as much as you can to ensure you see any insolvency coming before it is too late, even with seemingly safe established companies.
How can we help?
Joseph Collis is a Paralegal in our expert Debt Recovery team.
At Nelsons, our team in Derby, Leicester and Nottingham is experienced in dealing with these scenarios and can work with you to ensure you get the best results. If you need advice on recovering funds from a struggling debtor, including filing proof of debt forms, consult our Debt Recovery team, who will be happy to help.
Please contact us on 0800 024 1976 or via our online enquiry form.
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