UK distributor in administration
Wolverhampton-based stainless steel company Lockley Stainless and its Cambridge subsidiary CPC Stainless have gone into administration, placing 25 jobs in jeopardy.
The Featherstone-based business, one of the UK’s leading suppliers and processors of stainless steel flat products, continues to trade while a buyer is being sought by Deloitte joint administrators Dominic Wong and Richard Hawes.
The firm invested heavily in a new service centre last year but encountered cashflow problems following a slump in commodity prices and sales volumes.
In April 2008 Lockley opened a purpose-built 50,000 sq ft service centre in Wolverhampton. It is used as a product processing facility to decoil, cut and polish sheet stainless steel, as well as being a warehouse and head office.
Dominic Wong, reorganisation services partner at Deloitte in Birmingham, said: “Lockley invested substantial capital for a new service centre in 2008 which, combined with falling commodity prices and sales volumes, have resulted in profitability and cashflow problems.”