Clayton Glass enters administration with 290 jobs set to be lost

Nearly 300 jobs are set to be lost after major UK glass manufacturer Clayton Glass entered administration, with several of its sites now facing closure.

The company entered administration on 18 September after becoming unable to meet its financial obligations, according to administrators Interpath.

Clayton Glass currently employs 573 people across seven sites in the UK and manufactures insulated glass units for windows, conservatories, doors and glazing contractors.

The company's headquarters in Harelaw, County Durham, is among the sites that will close, with 189 employees being made redundant.

A further 101 jobs are set to be lost at Clayton Glass sites in Blackburn and North Lanarkshire, bringing the total number of redundancies to 290.

Administrators said the company had been affected by high energy and raw material costs, alongside an extended period of low demand.

Efforts were made to find a solution that would allow the entire business to continue operating, including discussions around external capital.

However, Interpath said no viable solvent solution could be found for the whole company, leading to parts of the business being sold.

The company's business and some of its assets have been sold to Clayton Glass Group Ltd, an entity backed by the former management team.

The deal will allow 283 jobs to be retained and includes Clayton Glass sites in Nottingham, Swindon, Canterbury and Dewsbury.

However, the Harelaw, Blackburn and North Lanarkshire sites will close as part of the restructuring, resulting in the loss of 290 jobs.

Harelaw is Clayton Glass's headquarters and largest site, making the closure particularly significant for the company's workforce in County Durham.

Interpath managing director and joint administrator James Lumb said Clayton Glass had a proud history in the British glass industry and that the transaction would provide the continuing business with a platform for the future.

He also said the wider industry was facing challenging conditions, including high and rising fixed costs and weaker demand from businesses supplying the housing market.

Interpath said a dedicated team is supporting affected employees through the process, including assistance with representations to the Redundancy Payments Service.