Administrators move in at CobraUK

24/08/2012 @ 03:34

Just months after opening a new Wrexham factory and winning a massive contract to supply Vauxhall, Welshpool based Cobra UK has gone into administration.

BDO LLP business restructuring partners, Kim Rayment and Tracey Pye, were appointed Joint Administrators over Cobra UK Automotive Products Division Limited yesterday, Thursday.

The company manufactures and supplies products to automotive manufactures and other industries and last year won the Queen’s Award For Industry and was recently shortlisted for a European Business award.

Kim Rayment said: “Unfortunately the economic climate and difficult trading conditions significantly affected the business. The joint administrators are taking all necessary steps to mitigate losses to creditors and, going forward, will seek to maximise recoveries for the benefit of all creditors.”

The administrators are currently reviewing the position of the company.

Managing director Gary Seale said the company had been in the process of negotiations for a major deal when Santander Bank called in the administrators.

“We are working with the administrators to try and rescue the deal with a major German company and doing everything possible to save the 134 jobs involved,” said Mr Seale.

Cobra earlier this year announced it would close its Welshpool production centre after landing a £12million contract with Vauxhall Motors with expansion to Wrexham and the creation of 49 new jobs.