Rubber firm axes 60 staff

A Staffordshire automotive component supplier has gone into administration and axed 60 staff in the wake of falling orders.

Three-quarters of the staff have been made redundant at Stafford Rubber Company.

The Norton Canes-based firm with 80 staff was founded in 1975 and makes foam inserts for products like car door interiors. Its main customers are across the automotive sector.

Ian Gould and Brian Hamblin, corporate recovery partners at the Birmingham office of PKF Accountants & Business Advisers, have been appointed administrators.

Mr Gould said Stafford Rubber's troubles followed a fall-off in orders and were directly related to the car industry's current slump.

He said: "There has been a significant decline in volumes. The future of the business is largely dependant on discussions with major customers, including Jaguar Land Rover.

"It is a nice company and everyone has worked really hard but it couldn't sustain the workforce with its current level of business.

"We have had three or four expressions of interest in buying the company and will try to maintain for the next few weeks."

The company's website set out its goals for the future following a recent strategic review. But today those aims are under serious threat. An announcement on the company's future could be made next week.