A Rochdale timber frame manufacturer’s reliance on low margin public sector work, including business for Rok, sealed its downfall and led to debts of £4m and the loss of 140 jobs, according to administrators.
Administrator Jason Elliot, of Cowgill Holloway, also told TTJ that two offers for Chandos Timber Engineering’s assets had been received and a sale decision would be made soon.
Assets include machinery, vehicles and the freehold production site on Karmo Industrial Estate, thought to be worth around £2m.
Mr Elliot said a number of parties had expressed interest in buying the business as a going concern, but these melted away in the face of a low margin order book and high number of staff.
“Chandos had been doing quite well for the first six to seven years but when the economic climate changed it went from private sector to social housing work.
“There was no doubt that a large portion of its downfall was down to Rok’s demise, but it was not everything,” said Mr Elliott.
“The margins were not there at all and there was no working capital to keep the business going. I just do not think the lower margins were ever taken into consideration.”
Chandos, led by former Howarth Timber employee Paul Abbott, recorded a turnover of £10m in 2008-09 and built north-west England’s first six-storey timber frame structure. In 2003 Mr Abbott was named Manchester Evening News Young Business Person of the Year.
As well as timber frames, Chandos manufactured roof trusses and floor cassettes.
