ASGHAR: Newport firm calls in the administrators after flood

Newport firm Coilcolor will today call in the administrators, with 50 employees being made redundant.

 

It follows a flood in November 2016, which caused £3.7m in damage to machinery, and lost work.

 

The company had been hugely critical of the Welsh Government’s response to the crisis, accusing them of a two-month delay in giving promised financial support. They were also critical of the response of Finance Wales, which arranged a loan for the firm, but only at an “extortionate” rate of 11%.

 

South Wales East AM, Mohammad Ashgar, said:

 

“This is hugely disappointing news for staff at Coilcolor, and you have to question the Welsh Government’s response to this crisis, which has done little to address concerns or to prevent the worst from happening.

 

“It also highlights fundamental concerns that I have about Finance Wales, which was only willing to offer financial support to the firm at an extortionate lending rate of 11%.

 

“Finance Wales is supposed to be there to support Welsh SMEs, not to act like a payday loans company.

 

“Today’s news will be difficult to take for the staff who are set to lose their jobs, and it is now vital that the Welsh Government makes every effort to support those affected, and to help the company secure a buyer for the site.”