Bromford Industries Limited and Accrofab Limited, based across three sites in Leicester, Derby and Alcester, have entered administration.
The companies are tier one suppliers to global OEMs in the aerospace, defence and power generation industries, specialising in the precision manufacturing and fabrication of components. Collectively, they employ 309 members of staff.
Like many other companies across the industrial manufacturing sector, the businesses have faced a number of challenges in recent times including escalating raw material and energy costs, supply chain disruption, and the wider impact on demand as a consequence of the Covid-19 pandemic.
While the facilities at Derby and Alcester were continuing to trade well, operational issues at the Leicester facility further exacerbated the liquidity challenges faced by the companies. In recent weeks, attempts have been made to seek urgent additional financial support from customers in order for production to continue.
After a series of productive discussions, the directors of the businesses have taken steps to protect the interests of creditors by seeking the appointment of joint administrators – Ryan Grant and Chris Pole from Interpath Advisory. This will allow the companies to continue to trade while the administrators seek buyers for the businesses and their assets. All members of staff will be retained by the administrators to enable trade to continue.
The U.S. operations and businesses of Bromford Group, including AeroCision and Numet, continue to operate entirely as usual and outside of the administration process.
Ryan Grant, Managing Director at Interpath Advisory and joint administrator, said: “Over the past 50 years, Bromford Industries has forged an excellent reputation as a tier one supplier of fabricated and machined components to the aerospace, defence and power generation sectors.
“We have been pleased with the positive conversations and financial support provided by customers in recent days, which has ultimately provided the businesses with a crucial lifeline. We’d also like to extend thanks to the companies’ employees for their support and understanding while this process has been underway.
“Our priority is now to seek buyers for the businesses and assets, and would urge any interested parties to contact us as soon as possible.”
