Coventry manufacturer Covrad goes into administration...

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Coventry manufacturer Covrad goes into administration...

Postby dutchman » Tue Jan 12, 2021 3:45 pm

Canley-based Covrad employed 66 people

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A Coventry manufacturer which employed more than 60 people has gone into administration.

Administrators were appointed to Covrad Heat Transfer Limited on Wednesday, January 6.

Their appointment came after the company suffered a decline in turnover due to the coronavirus pandemic.

The Canley company, based in Sir Henry Parkes Road, manufactures heat transfer equipment and serves the power, rail, marine, oil and gas, and off-highway markets.

Covrad employed 66 people and 28 staff have been made redundant in the wake of administrators being appointed.

It is one of Coventry’s oldest companies and can trace its origins in the city back to 1886.

Raj Mittal and Tony Barrell, partners at specialist business advisory firm FRP, were appointed joint administrators of the company.

A spokesman for the administrators said they were appointed after Covrad suffered a decline in turnover as a result of the Covid-19 pandemic and key customers re-sourcing products to alternative suppliers, which has made the business unsustainable in its current form.

The administrators are now in discussions with Covrad’s key customers regarding ongoing orders.

They said that due to the current low level of orders they have made 28 of the employees returning from furlough redundant.

The remaining 38 employees have been retained to support re-confirmed orders and the administration process.

Mr Mittal, a partner at FRP, said: “Despite the efforts of the directors and management, the reduction in turnover and consequential trading losses facing the company were not able to be resolved and resulted in the decision to place the business into administration.

“Our immediate priority is now to support those affected and work closely with the Redundancy Payments Service to ensure that employees receive every support at this difficult time.”

The husband of one member of staff at Covrad told CoventryLive: “I came home today to find my wife in tears.

“She arrived at work and said goodbye to people she classes as friends, not just colleagues, after more than 15 years.

“Some of them have worked there for more than 30 years.

“The Covrad that they gave their heart to has gone.”

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dutchman
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Re: Coventry manufacturer Covrad goes into administration...

Postby Melisandre » Tue Jan 12, 2021 6:18 pm

One of my sisters use to work there in the 60s as a punch card operator.
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Re: Coventry manufacturer Covrad goes into administration...

Postby dutchman » Tue Jan 12, 2021 6:32 pm

Is there anyone our age who doesn't know someone who used to work there?
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Re: Coventry manufacturer Covrad goes into administration...

Postby rebbonk » Tue Jan 12, 2021 9:41 pm

dutchman wrote:Is there anyone our age who doesn't know someone who used to work there?


I doubt it, Dutchman. Like Massey's, it was an institution.
Of course it'll fit; you just need a bigger hammer.
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