Chatham glass firm ceases trading

Diamond Glass (Medway) has ceased trading after administrators failed to find a buyer.

Andrew Pear and Richard Keley of BM Advisory were appointed joint administrators on November 9.

Formed in 1995, the Diamond Glass (Medway) was a well-established glass processor based in Chatham, Kent, and employed 33 staff. The company manufactured double glazed units – including leaded, Georgian, bevelled and coloured units – and had its own toughening plant.

The business had suffered from a recent downturn in sales, principally due to a reduction in orders from existing customers, as well the rise in the price of raw materials as a consequence of the weakened pound, both of which had significantly impacted the company’s margins, the administrators said.

In October, BM Advisory was engaged to conduct a review of the financial position of the business and it was concluded that Diamond Glass (Medway) was insolvent. An accelerated marketing campaign in respect of the company’s business and assets was conducted, but no offers were forthcoming.

Subsequently, a decision was taken by the company’s funder on November 9 to place the business into administration.

“As the director of Diamond Glass (Medway) was unable to meet the direct costs and operational overheads of the business, it became clear that the company could not continue,” Andrew Pear said. “It has therefore ceased trading and the assets are being offered for sale via the administration.

“The administrators are also taking steps to assist in the collection of the outstanding debtors’ ledger and to realise the assets of the company for the benefit of its creditors.”

All staff have been made redundant and BM Advisory is providing the necessary advice and support to them.