Architectural Glass and Aluminium Ltd faced financial turmoil, entering administration with significant debts.
- The company owed a Coronavirus Bounce Back loan, nullifying its cash reserves.
- Formerly employing 43 staff, the firm left numerous debts unpaid to employees and subcontractors.
- Founded in 2019, ARGLA attempted expansion but faced legal disputes that impacted its finances.
- Only secured creditors are expected to recover funds, leaving many others with losses.
Architectural Glass and Aluminium Ltd (ARGLA), a specialist in glazing and aluminium facades, succumbed to financial pressures with no net cash when administrators were appointed. A Coronavirus Bounce Back loan, which the company owed, neutralised its bank balance, leaving it unable to meet its financial obligations.
Administrators from RSM Restructuring Advisory disclosed that ARGLA’s bank account held £30,000. However, this was overshadowed by a Coronavirus Bounce Back loan of £39,500 and total debts to Metro Bank amounting to £433,000. The financial burden was further exacerbated by losses incurred from an undisclosed major contract and ongoing legal conflicts with an unnamed main contractor.
The impact was immediate and severe for ARGLA’s workforce. Upon entering administration, all 43 employees were made redundant, collectively owed £33,700. Subcontractors and other partners in the supply chain were not spared either, facing a total shortfall of £1.5 million. Unfortunately, HMRC was also left without £118,400 in expected payments.
Despite ARGLA’s recent projects, including notable facade work at the DC3 and DC5 buildings for GMI Construction Group in Bowburn, these efforts were not enough to prevent the company’s collapse. The administrators’ reports indicated that there was no chance of any dividends being distributed to former employees or subcontractors.
Efforts by RSM to recover debts were met with numerous counter-claims from ARGLA’s clients, which exceeded the value of the debts sought, leading to the withdrawal of these claims. Established in 2019, the company’s ambitions saw a move to larger premises and an increase in staff numbers. However, this expansion was ultimately unsustainable given its financial difficulties.
The downfall of Architectural Glass and Aluminium Ltd highlights the challenges faced in balancing expansion with financial stability in the construction industry.
