Almost 400 people in Kent have lost their jobs after two big employers went into administration on the same day.
Folkestone Fixings Limited (FFX), a tools and hardware retailer based in Folkestone, Ashford and Lympne, is now closed – with 147 workers made redundant.
Meanwhile, it has been confirmed that 240 employees at the Whitstable branch of ISG have also lost their jobs. The UK operations of the international construction giant collapsed into administration on Friday, with 2,200 workers in total made redundant with immediate effect.
The business, owned by the US firm Cathexis, had been struggling financially for some time, joint administrators EY said in a statement.
On the same day, Jane Steer, Tim Higgins and Toby Banfield of PwC were appointed as joint administrators of FFX.
Customers have been informed that any existing order is unlikely to be fulfilled.
A spokesperson for PwC said: “Unfortunately, the company’s financial position means it is not able to continue trading, and as a result, all stores and the website will cease to operate immediately.
“The administrators will retain some employees at the company’s head office in Kent for a short time to support in winding down operations but it is with deep regret that the remaining 147 employees, based across head office and retail sites have had to be made redundant immediately on appointment.
“The administrators are working closely with the Redundancy Payments Service to ensure that those affected receive their statutory entitlements as soon as possible.”
Following a downturn in trading after the Covid pandemic, FFX had been exploring options to restructure and turn around the business. This included building its own brand proposition, reducing its cost base and taking steps to improve working capital cycles, according to PwC.
Despite efforts from the company and its stakeholders to find a solution, it was left with no option but to appoint administrators.
The head office and main distribution centre is in Otterpool Lane, Lympne.
The other two branches are based in the Park Farm Industrial Estate in Folkestone and Brunswick Industrial Centre in Ashford.
FFX began trading in 2003 and had grown to become one of the UK’s largest independent suppliers of high quality tools, fixings and building supplies, fulfilling more than 750,000 orders in 2020, according to the company’s Facebook page.
It adds: “We are very passionate about everything we do and our excellent and growing reputation speaks for itself. This has culminated in us winning Power Tool Supplier of the year in 2018 and 2019.”
The collapse of ISG has been described as “devastating” for the construction industry – and there are fears it could lead to other firms going under.
The chief executive of Build UK, Suzannah Nichol, told the BBC’s Today programme that many smaller businesses in the supply chain would not now receive money, putting their future at risk.
ISG holds more than £1 billion in government contracts and MP Liam Byrne, chair of the Business Committee, says he is “deeply concerned” at what has happened.
Timothy Graham Vance, Alan Michael Hudson and Dan Edkins of EY were appointed as joint administrators to eight UK trading entities of ISG, including the Whitstable branch.
A spokesperson for EY said: “ISG’s UK business has experienced liquidity constraints in recent months.
“The directors explored a number of options to secure the future of the business, including a sale of all or part of the Group and refinancing options.
“Despite significant efforts to secure a sale of the group over many months, a deal could not be completed.
“Due to current market conditions, an alternative sale or additional funding could not be secured. As a result, the Directors made an application to court to place certain UK trading entities of ISG in administration.”
