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Window firm blames late payers for job losses

Martin Stanton, of Maidstone-based EMC Management Consultants
Martin Stanton, of Maidstone-based EMC Management Consultants

A culture of late payment has been blamed for the collapse of a window manufacturer with the loss of 34 jobs.

Stenmar Aluminium, the parent company of Edenbridge-based Marsland and Co, and Marsland Commercial Windows, has called in an administrator after the firms became the latest victims of the severe downturn in the construction industry.

A third company, Marsland Domestic Windows, is not affected.

The business laid off 49 workers last year in an attempt to cut costs and ensure the survival of one of Edenbridge’s largest employers.

A further 34 jobs will go following the decision to stop trading.

The decision is a blow to turnaround specialists Martin Stanton and Desmond High of Maidstone-based EMC Management Consultants - called in in early 2008 to try and restore its fortunes.

They said the companies were owed more than £1m for jobs completed satisfactorily but getting the money had been a major challenge.

As economic conditions in the construction industry deteriorated further, it had become "almost impossible to get customers to pay on time, or at all, for work that has been completed."

They claim that even customers who had shaken hands on a settlement figure had subsequently "reneged" on payment.

"There is a mindset that says it is good to avoid paying, and that perhaps Marsland is "big enough" to bear the cost," they said. "The real losers are the people who have worked at Marsland and are now out of work, and the innocent suppliers who won’t get paid."

In a joint statement, they said they knew it was a tough challenge but changes had begun to bear fruit. "Ultimately, we did not have the depth of resources to cope with the significant reduction in demand and margins in the authum, and since the start of 2009, the absence of any cash flow in.

"We also under-estimated the depths to which some people in the construction industry will go to avoid paying, often in the clear knowledge of the effect on everyone in the supply chain below them."

Erik Torstenson, whose family founded Marsland nearly 50 years ago, said: "It is a sad day for Marsland, its staff and our family. We have been involved in the manufacture and installation of product for many years and been a major employer in the Edenbridge area, but the market conditions have changed so dramatically in the last year that we have ended up with little choice.

"There are a great many loyal people who have made significant contributions to the business over the years and I feel truly sorry for those who have battled in recent times against increasingly difficult odds."

Mark Newman of Vantis, Tonbridge, is administrator to Marsland and Co and liquidator to Marsland Commercial Windows.

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