500 UK jobs at risk after Aston Martin and Bentley cut ties with parts manufacturer
Aston Martin and Bentley’s decisions to terminate contracts with a UK company that makes car components has sparked fears that hundreds of jobs could be cut as the firm battles to survive.
The two marque’s recently decided to cull their contracts with the Hampshire-based parts manufacturer Formaplex, which fell into administration yesterday, Sky News reported.
Some 500 staff were sent home as the Portsmouth-headquartered company brought in administrators for the second time in its history.
Alvarez and Marsal have been appointed oversee the insolvency process.
One insider told Sky News that other Formaplex customers, such as Lotus and McLaren, were being approached for funding in a bid to help the struggling company.
A spokesperson for the administrators said: “Every effort is being made to save the business and as many jobs as possible. Formaplex’s employees have been sent home to enable a full stocktake to be carried out.
“Active discussions with the company’s customers have begun, with a view to securing funding for the continued trading of the business whilst a buyer is sought over the coming weeks.
“These initial discussions have been constructive.”
A spokesperson for Bentley said: “Due to the company’s continued financial instability, we can confirm that we are in a transitional period where in the coming weeks we will divert the parts supply from Formaplex to other UK manufacturers.”
An Aston Martin spokesperson confirmed the marque had ended its relationship with Formaplex in December.
“Aston Martin continually monitors the performance of its suppliers, including from a financial perspective, in order to protect the continued production of its vehicles,” they said.
Formaplex was owned by the private equity group Elaghmore following an acquisition in 2021, which had brought it out of its first administration. Established around 20 years ago, it operates four manufacturing sites on the south coast of England.
A spokesperson for Elaghmore, said: “Despite having made a significant investment in Formaplex since we acquired it in 2021, the extremely challenging economic and trading conditions since then have severely impacted the business.
“The impact of high inflation, the disruption in global supply chains combined with the recent loss of two key customers meant that we reluctantly concluded with the management team that administration was the only option.”