VARLA CLADDING LIMITED has reportedly entered into administration today (26 September 2023), making all 33 staff redundant with immediate effect.
The company is reportedly unable to pay staff until the end of the month.
It has also been disclosed that the business has allegedly not paid on staff’s pension deductions accumulated during the past year. It means the workforce will not benefit from the sums in their pension pots.
The York based flat roofing and cladding subcontractor specialists installed zinc, copper, stainless steel and aluminium roofs, as well as cladding. It worked on both domestic and commercial projects. The business also introduced pitched roofing work to its repetoire in recent years.
Varla undertook cladding remediation work and was supplied by many major manufacturers in the industry, including VM Zinc, Euroclad, Proteus, Metal Solutions and Fatra. It is not known whether the business has left unpaid debts to its suppliers. Projects have included some prestigious sites, including Tate Art Gallery, the RAD building in Nottingham and New Cross Hospital.
In the director’s statement lodged at the end of 2021, it states, “Although the current economic climate creates both cashflow and profitability risks for the company, the directors believe on balance that they have sufficient resources to enable trading to continue for a period of at least one year.”
They stated that while the company had net assets of £1,989, net liabilities were £336,434. Despite the directors were willing to support the company “for the foreseeable future”.
The company’s record shows investors Silex Management Limited resigned as directors on 19 September after having supported the business since 2014.
Varla Cladding Limited was established in May 2012, after previous business Varla (UK) Ltd (V Realisations 2012 Ltd) was closed, owing £2m. The company was eventually dissolved in 2019 after a seven years liquidation process.
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