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Cobra jobs go with Wrexham car parts firm in administration | Cobra jobs go with Wrexham car parts firm in administration |
(about 1 hour later) | |
A car components firm which relocated to Wrexham from Powys eight months ago has gone into administration. | A car components firm which relocated to Wrexham from Powys eight months ago has gone into administration. |
Administrators said 18 staff were being made redundant at Cobra UK but 120 would remain as they seek to sell the firm as a going concern. | Administrators said 18 staff were being made redundant at Cobra UK but 120 would remain as they seek to sell the firm as a going concern. |
The company, which still has a site in Welshpool, moved after landing a £12m order from Vauxhall to supply interior parts for the new Astra. | The company, which still has a site in Welshpool, moved after landing a £12m order from Vauxhall to supply interior parts for the new Astra. |
It makes components for brands including Bentley, Audi and Volvo. | It makes components for brands including Bentley, Audi and Volvo. |
Kim Rayment, one of the joint administrators, said: "Unfortunately the economic climate and difficult trading conditions significantly affected the business. | Kim Rayment, one of the joint administrators, said: "Unfortunately the economic climate and difficult trading conditions significantly affected the business. |
"However, we are hopeful of securing a sale and the company will continue to trade whilst this is explored." | "However, we are hopeful of securing a sale and the company will continue to trade whilst this is explored." |
Cobra UK took over a 70,000 sq ft building on Wrexham Industrial Estate last Christmas. | Cobra UK took over a 70,000 sq ft building on Wrexham Industrial Estate last Christmas. |
It was previously occupied by German company BoS, which switched production to Hungary and Romania four years ago with the loss of 125 jobs. | It was previously occupied by German company BoS, which switched production to Hungary and Romania four years ago with the loss of 125 jobs. |
The company's expansion was backed with money from the Welsh government's repayable business finance scheme, which was understood to be less than £250,000. | |
BBC Wales understands the firm was on the verge of securing support from a German company, which could have led to further expansion. | BBC Wales understands the firm was on the verge of securing support from a German company, which could have led to further expansion. |
Large loan | |
But a well placed source said before a deal could be signed Cobra's bankers decided to call in a large loan at short notice. | But a well placed source said before a deal could be signed Cobra's bankers decided to call in a large loan at short notice. |
"We're still hoping the deal can be rescued," the source added. "We were within touching distance of the winning post and everyone is devastated that this has happened." | "We're still hoping the deal can be rescued," the source added. "We were within touching distance of the winning post and everyone is devastated that this has happened." |
A Welsh government spokesperson said: "Officials are maintaining close contact with Cobra and have offered support to the company to see if jobs can be retained. | |
"If this is not possible, the Welsh government would look to recover any funding it provided to the company." |