Clayton Glass rescue saves 283 jobs but leaves 290 redundancies

Clayton Glass Limited, one of the UK’s largest manufacturers of insulated glass units, entered administration on 18 September, with part of the business immediately sold to an entity backed by its former management team in a transaction that preserved 283 jobs but resulted in 290 redundancies.

James Lumb and Howard Smith of Interpath were appointed joint administrators after high energy and raw material costs and an extended period of weak demand squeezed margins and left the company unable to meet its financial obligations. The business had sought to secure a rescue of the entire operation with support from external capital, but no viable solvent solution could be found.

Founded in 1956, Clayton Glass manufactures and supplies insulated glass units to window, conservatory, door and glazing contractors. Prior to the administration, the company employed 573 people across seven sites in the UK.

Immediately following their appointment, the administrators sold the business and certain assets to Clayton Glass Group Limited, an entity backed by members of the former management team. The transaction includes the company’s operations in Nottingham, Swindon, Canterbury and Dewsbury and resulted in 283 employees transferring to the purchaser.

The company’s remaining sites in County Durham, North Lanarkshire and Blackburn are being closed, resulting in 290 redundancies. The County Durham operation at Harelaw served as Clayton Glass’ headquarters and was its largest site.

Interpath said the difficulties facing Clayton Glass reflect broader pressure on businesses supplying the UK housing market, where soft demand and high fixed costs have put pressure on manufacturers. Lumb said the directors had worked to find a solvent solution, but the economics of the sector meant the entire business could not be rescued.