Around 600 jobs are under threat at an automotive industry supplier which counts names such as Jaguar Land Rover and Nissan among its clients.
Administrators from Duff & Phelps have been appointed to the º£½ÇÊÓƵ trading companies of Arlington Automotive Group which specialises in products such as bespoke thermostats for vehicles and the manufacture and assembly of engineered vehicle systems.
The company's º£½ÇÊÓƵ operations are headquartered in Coventry with bases in Birmingham, Manchester, Newton Aycliffe, Reading and Stourport while its Derby site has already commenced closure, administrators said.
Duff & Phelps said the º£½ÇÊÓƵ arm of the international group had grown rapidly with a number of acquisitions in recent years, the restructuring costs of which had recently placed a strain on cash flows.
Administrators added that the company had also battled wider changes in the automotive sector, including Brexit uncertainty around tariffs, which had led to a number of manufacturers announcing the transfer of production away from the º£½ÇÊÓƵ.
A "number of redundancies" have been made by the administrators although they did not give an exact figure.
They are now working with stakeholders to review options for the º£½ÇÊÓƵ operations in a bid to ensure it can continue trading into the future.
Joint administrator Allan Graham said: "The financial issues faced by the group have been compounded by coronavirus.
"New car registrations have fallen dramatically and the complexity of supply chains in the sector have led to a sudden halt to manufacturing.
"However, the º£½ÇÊÓƵ group is underpinned by its strong core operating sites and post coronavirus will, with its world-class technology, engineering and manufacturing base, be well positioned to take advantage of the evolving car market."
Mark Franckel, chief executive of Arlington International, added: "The º£½ÇÊÓƵ group has longstanding and deep-rooted relationships with its customers.
"I am confident the restructured business will be a key supplier to the automotive industry moving forwards, particularly our thermostat technology which is widely used in the rapidly growing hybrid and electric car markets.
"We remain excited about the growth potential of these markets and Arlington's critical position in them."
The wider group's international operations are unaffected by the administration of the º£½ÇÊÓƵ trading companies.
