It is reported that over 80 people have lost their jobs at Fife-based manufacturing company Greenfold Systems after the announcement by Alexander Dennis that it plans to refocus its operations on its Scarborough site.
The company supplies parts for buses, and said that work for Alexander Dennis represented a significant proportion of its income. On Thursday 10 July, administrators were appointed, and 81 of the 90 staff at the company laid off, with the remaining staff kept on only temporarily to deal with the closing down process. Although Alexander Dennis stated that no final decision had been made and that the plans were still in consultation, many fear that the closure will go-ahead, which has had a knock-on effect on suppliers such as Greenfold.
Joint administrator and partner at insolvency practitioners FRP Advisory Callum Carmichael said: “Greenfold Systems was a well-regarded business that had carved out a specialist role in the commercial vehicle supply chain. Unfortunately, the loss of a major customer contract had an immediate and severe impact on its financial position. Our priority now is to support the affected employees and to maximise returns for creditors.”
Scottish Business Minister Richard Lochhead said: “I am very disappointed to learn that Greenfold Systems has entered into administration. This will clearly be a very difficult time for the workforce and their families. The people affected by this announcement are our immediate priority and the Scottish Government will do everything in its power to help those affected through our initiative for responding to potential redundancy situations.
“We continue to explore all viable options to support Alexander Dennis, its workforce and the wider businesses and communities they support. We are doing this at pace and in close collaboration with the company, trade unions, Scottish Enterprise, Transport Scotland and the UK Government.”
