Hundreds of jobs axed at Schlegel Automotive as Nissan walks away

Posted on 5 Oct 2012

Hundreds of workers at manufacturer of car-sealing systems Schlegel Automotive Europe received news that many of them will be made redundant after the company entered administration.

The sealing company based in Coalville, Leicestershire, currently employs 334 people but 218 of those are likely to be axed immediately and the rest of the workforce set to follow. The job losses are a direct result of losing a large contract with Nissan.

The remaining workers not selected for redundancy will be kept on until existing contracts have been honoured.

The appointment of Situl Raithatha of Leicester restructuring firm Springfields as administrator became necessary due to Schlegel’s   significant downturn in trade and the consequential impact on cash flow.

The administrator is in the process of conducting a review of the business and assessing the viability of the company continuing to trade, with a view to a sale of the business and assets.

Situl Raithatha, Director at Springfields, said: “Regrettably, a significant number of redundancies have been necessary due to the loss of business accounting for a substantial portion of the company’s turnover.”

Schlegel was purchased by the RUIA Group in 2008 but the resources and support it promised failed to materialise.