Yorkshire's Safestyle UK enters administration: 'Devastating' impact on staff and customers explained

It was announced on Monday afternoon that the Bradford-headquartered firm, which also operates a large manufacturing factory in Wombwell, near Barnsley, has been placed into administration with the company expected to be wound down.

The company had employed around 750 workers and all but 70 of them have been made redundant. The remaining staff are only staying on a short-term basis “to assist with an orderly wind-down of the business”.

Speaking outside the Wombwell site, Barnsley East MP Stephanie Peacock said: “Workers have been told in the car park in the pouring rain that they have lost their jobs. It is absolutely appalling that anyone could be treated this way. There are huge questions to be answered by Safestyle.”

The firm had operated 42 sales branches and installation depots across the UK.

The collapse of the company follows it reporting a £6m loss before taxation for the first half of 2023. Revenues for the six-month period had been £74.1m, down from £78.3m in the same period in 2022, when a £1.4m loss was recorded.

Rick Harrison, managing director at administrator Interpath Advisory, said: “These are really challenging times for companies across the home improvement market. After seeing strong sales during the Covid-lockdown periods, many companies are seeing trading being impacted by the cost-of-living crisis and soaring costs.

“Unfortunately for Safestyle, and despite the tireless efforts of the management team over recent months, these challenges have proven too difficult to overcome. This will be particularly devastating for the company’s employees, as well as the many self-employed contractors who worked on behalf of the company.

"Our immediate priority will be to provide support to those impacted by redundancy, including supporting them in making claims to the Redundancy Payments Service where relevant.”

Interpath said customer orders will not be fulfilled while the company is in administration.

Customers who have booked installations but not paid deposits have been told the jobs are cancelled while those who are mid-way through having windows and doors installed by the company have been told to find alternative workers to complete their jobs.

The administrators said: “Customers who are mid-way through the installation process are advised that, regrettably, the company in administration is unable to complete the installation, and as such, they will need to seek alternative installers. In this circumstance, customers will not be charged by the company in administration for the remaining balance owed.”

Those who have paid deposits for installations yet to take place have been told they can make a claim to their credit or debit card provider if the money was paid by card. However, those who have paid in cash will not have anything repaid and will instead be treated as unsecured creditors during the administration process – meaning they are unlikely to receive anything back.

Prior to the administration announcement, the GMB union said sources had told it that the company received more than £10 million in orders last month, while thousands of pounds were spent on social media advertising on Friday alone.

On Friday night, the business announced companies in the group are “no longer able to continue trading as a going concern” following prospective buyers withdrawing their interest.

The GMB union said staff in Barnsley had been “told to down tools and marched off site” on Friday.

CEO Rob Neale said on September 27 that there had been “continued economic uncertainty and depressed consumer confidence” but added that he was “confident that the business is well-positioned to deliver a strong recovery when macro conditions improve”.

However, on Friday morning the company announced it was suspending trading in its shares following a failure to secure a sale.

A subsequent announcement about the intention to appoint administrators was made 11 hours later on the same day.

Staff meetings were taking place on Monday afternoon about the next steps for the business.

Lee Parkinson, GMB Organiser said: "Safestyle UK workers have been completely let down by mismanagement from the very top of the business.

"Hundreds of workers have been cruelly cut off from work, weeks before Christmas, with no guarantee that they will even get last week's pay-check.

“The impact of this closure upon the community of Barnsley cannot be overstated. It is simply devastating.

"We need urgent answers on where the money has gone."

In the firm’s most recent results, it stated it had spent £1.4m on a TV and radio advertising campaign during February and March.

It said the investment had “significantly increased brand awareness”.

Mr Neale said in September that the window and door installation market “has been impacted by rising inflation, which has continued to remain higher than economic forecasters expected and consequential higher interest rates have resulted”.

He added: “This has put even greater pressure on our customers' disposable incomes, weakened consumer confidence and increased the cost of providing our market-leading finance products.”