Dundee manufacturing firm Ravensby Glass has announced it could close with all jobs at risk just weeks before Christmas.
Staff have been told to expect redundancies after Ravensby recorded “unsustainable losses” this year and bosses said it had “no prospect” of returning to profitability.
Director Nicholas Cunningham has told staff the redundancy process was now under way, with the 45 day notice period being introduced this week.
He remained adamant despite beginning job loss procedures, Ravensby Glass was not being placed into administration.
Without cutting the number of employees, he said, the company would need to close within the next two months.
Ravensby Glass to cut jobs
Latest accounts filed for Ravensby Glass show they recorded a pre-tax loss of more than £1 million to the end of October 2023.
This was despite turnover of more than £18.2m during the same accounting period.
The company last year reduced its headcount by almost 30, from 175 staff in 2022 to 147 in 2023.
Ravensby Glass started in 1985 as part of Tayside Windows and was acquired nine years later by Malcolm, Ogilvie & Co, whose roots in manufacturing in Dundee go back more than 170 years.
It has two buildings in Dundee’s West Pitkerro Industrial Estate, which recently received multi-million pound investments.
It supplies to the public, residential, commercial, historic and medical sectors in the glass industry.
Employees told to expect redundancy
Writing to employees, director Nicholas Cunningham said: “For some time the company has been experiencing a serious situation with very substantial financial losses having been incurred over recent months and during the immediate past two financial years.
“Similarly the forecast position reflects an ongoing outlook of unsustainable losses in excess of £1m.
“We have not been able to recoup historic profit from our customer base that we have lost.
“Energy costs are remaining high. Our markets are not showing the improvements we had hoped for and with not attaining full production coupled to some quality issues continuing, this puts us in an extremely difficult position.
“Attendance has improved but still remains an underlying issue for productivity.
“Recent fiscal budget changes, particularly in regard to minimum wage legislation, National Insurance costs and investment opportunities are all factors working against us.
“Unfortunately, in spite of technical and commercial developments achieved, the company continues to make unsustainable losses with no prospect of returning to profitability.
“In this respect we very much regret to advise that if the parent company is not able to avoid the need for redundancies, our proposal is to cease trading and to wind up the affairs of the company during the course of the coming months.
“In the circumstances we have to advise you that there is a potential redundancy situation arising which may affect all employees and that the consultation process will commence in the course of the next few days.”
He continued: “The company will be exploring ways of avoiding redundancies. The company will carry out a 45 day consultation exercise with appropriate representatives of employees.
“The consultation will cover the company’s proposal and ways of avoiding redundancy.
“As there are currently no appropriate representatives, the company will seek nominations to appoint employee representatives.
“As well is consultation with the representatives, employees will be consulted individually about the proposals and about how it may affect them personally.
“We would like to thank you for your continued hard work during this difficult period.
“It is of paramount importance that our product quality is of the highest level so as to guarantee customer payments and avoid any of our financial plans from being jeopardised.”
Conversation