Telford manufacturer Moveero set to place UK businesses into administration

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Formerly GKN Wheels & Structures, Moveero specialises in wheels, rims and hubs, used in off-highway industries such as agriculture and construction.

It designs, makes and tests them as well as offering after-sales support.

The business continues to trade as normal and no redundancies have been made but administrators from Interpath are expected to be appointed over the coming days.

The firm was previously part of engineering giant GKN but was bought out by German private equity group Aurelius in 2020 and changed its name the following year.

The UK arm is based at Hadley Castle Works in Telford and it also has operations in Denmark, Italy and the US but these are not affected by this announcement.

'Significant financial challenges'

A statement issued by Moveero said it had faced "significant financial challenges" over recent years due to a weakened off-highway market, sustained pricing pressure and intense competition from lower-cost producers.

The businesses now required significant further funding to enable them to trade through the next financial year and beyond, the statement added.

It said: "While the directors of the businesses continue to work extensively to try to secure additional funding, it has become clear it is currently not possible for the business to trade as normal without taking protection from creditor action.

"As such, the directors have taken the difficult but necessary decision to start the process of placing Moveero's UK companies into administration."

Chief executive David Geraghty added: "The aim of this process is to protect the business and give it the best possible chance of a successful future."Importantly, once the administrators have been appointed, the businesses will continue trading while the process to find a buyer remains ongoing."