Shropshire Star

40 jobs lost as family business goes into administration

A family business has filed for administration with the loss of about 40 jobs.

Published

Frame Wise Ltd, based on the Presteigne Industrial Estate on the Powys border, experienced trading difficulties during the recessions.

Its former managing director said the business suffered because of withheld and non-payments and is calling on the Government to bring forward payment legislation warning, otherwise, the industry will self-destruct.

Trading has been suspended and every effort is being made to find a buyer for the business so that contracts can be completed.

The company has filed a notice of intention to appoint administrators which creates protection over the assets until the administrators are appointed.

Former managing director Simon Orrells said non-payments and withholding payments by large and medium-sized contractors have caused the problems and he has called on the Government to bring forward payment legislation and accelerate the implementation of "fair payment" rules before the industry self-destructs.

Mr Orrells said: "After surviving the recession, investing heavily in off-site manufacturing equipment and machinery, to be forced to take this action is a bitter blow.

"There is a constantly re-emerging trend of non-payment by large and medium sized main contractors, in many cases without justification, and withholding payment from small companies such as Frame Wise can have a crippling effect."

The proposed Administrators are W John Kelly and Mark Malone of Begbies Traynor (Central) LLP.

Creditors will be advised by the proposed Administrators following their appointment next week.

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