The company, which billed itself as Europe’s largest timber conservatory manufacturer, went into administration on October 4 less than two years after a new owner took over and invested millions of pounds into the business.
Some 182 staff were made redundant by administrators Grant Thornton.
Richard Hawes, of Grant Thornton, told TTJ that the factory site and assets would be advertised for sale. Initial interest has come from both the joinery sector and other industries.
A skeleton staff is being kept on to finish a small number of orders.
Mr Hawes said Baltic Conservatories had suffered quality control issues and had needed “substantial” sums of money to stay afloat. The company’s directors laid off 85 staff in September.
“I think they were trying to turn the company around from a cheap and cheerful type of operation to something which was quite a high quality product,” said Mr Hawes.
“They changed from a softwood to a hardwood product and had sales and installation teams. The trouble is the market was not prepared to pay what that costs.”
Mr Hawes said a large sum of money held in trust by the company should cover customers’ deposits.
Businessman Tony Murtagh acquired the company in December 2004 and embarked on a major redevelopment programme designed to turn the company from a “sleeping giant” into a household name. About £2m was spent building a call centre and 150 new staff taken on.
Baltic Conservatories made about 6,000 timber conservatories annually and had a turnover of £18m in 2004.
Administrators Grant Thornton can be contacted on 0117 9267322.
