The receivers for Dale Joinery say they have made 69 of the 234-strong workforce redundant.
It was announced last week that the company had gone into receiveship, with the local press reporting that it had accumulated debts of millions of pounds.
Ernst & Young later said it had laid off 64 of the staff from Dale’s main Queensway site in Rochdale and a further five from the Lichfield factory.
Amy Rotheram, spokesperson for the receivers, said the decision to make redundancies had been made “with great regret”. She added that Ernst & Young had been appointed receivers at Dale and its parent Brand Holdings Ltd at the request of the companies directors. They were now looking at whether the business could be saved.
“We have held discussions with all remaining employees at both of the company’s sites and they are aware of the current situation,” she said. “We are now working with Dale’s management to pursue all possible options for the sale or survival of the company, but it is too early to comment on the likely outcome.”
Ernst & Young said Dale had gone into receivership after several months of difficult trading conditions. There had also been a failed attempt earlier to sell the business.
In 2000 Dale was acquired by the Brand Holdings Group which aimed to create a diversified buildings products business. Brand forecast its first year turnover at £35m.
Ernst and Young stressed that the other Brand subsidiaries, door panel manufacturer APP and door manufacturer (Bridgman) IBC, are not affected by the receivership and are continuing to trade as normal.
British Woodworking Federation director Richard Lambert said that his feedback from the UK joinery sector was that “the market is very strong, but that conditions are intensely competitive.”
