80 jobs to be axed as engineering firm Schlegel Automotive Europe fails to find buyer
An engineering firm which makes car parts is to close with the loss of about 80 jobs.
Schlegel Automotive Europe, in Bardon, near Coalville, will stop production on January 20 after administrators failed to find a buyer for the stricken business.
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Nissan car
The company went into administration in October, after losing a large contract with car giant Nissan.
As a result, the firm immediately cut its employee numbers from 336 to 115 and in November reduced the workforce by another 33 jobs.
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Yesterday, Situl Raithatha, from Leicester administrators Springfields, said despite weeks of trying to sell the business, which manufactures car sealing systems, it had proved impossible to find a buyer.
The majority of the firm's 82-strong workforce will be made redundant when production stops and a team of skeleton staff will be kept on to help with the winding down of the business and disposal of the firm's assets.
Mr Raithatha said: "Together with the Schlegel management, we have continued to work tirelessly to find a buyer but unfortunately this has not been possible.
"I would again like to thank management, employees, contractors, customers and suppliers for their support during the period since administration."
Schlegel, established in 1958, was bought by RUIA Group in 2008.
In November, the wife of a long-term employee who had lost his job told the Mercury: "For people such as my husband, finding out they are going to lose their jobs could not have come at a worse time. "Some of them are in their 50s and are going to find it hard."
An event has been organised to offer advice to Schlegel's remaining workforce and former employees. Organised with North West Leicestershire District Council and the Unite union, it will be held at the council offices in Whitwick Road, Coalville, on January 17.
For further information, contact Schlegel's HR manager Steven Finnie via e-mail at:
steven.finnie@ schlegel-auto.com
Comments
by Careers Partnership (UK) Ltd
Wednesday, January 09 2013, 10:11AM
“Such sad news.
Schlegal was as vulnerable as any other company dependent on one large customer - it's not always possible to widen the customer base and spread risk. The company had a very good reputation in its sector and I hope there is some way of giving it a new life.”