Timber frame kit supplier Torwood Timber Systems went into administration on March 25, with a switch by some customers to masonry build cited among its problems.
Administrators KPMG immediately laid off 16 of the Livingston-based company’s workforce and the remaining 18 will be made redundant once its assets have been sold. Offers are invited for plant, machinery, stock and the company name.
KPMG’s Blair Nimmo said that Torwood’s sales had been hit over the last 18 months by the general housing slowdown and in the year to January 31 were under £5m.
“In recent months a few suppliers have also reduced credit terms as credit insurance has become more difficult to obtain,” he said.
In addition, he said, “certain key customers have cancelled forward orders as they shift away from timber kit techniques to more traditional bricks and mortar construction”.
“Together these factors contributed to trading losses and severe cashflow pressure.”
