Manganese Bronze Holdings holds on to 108 staff at cab firm
THE ADMINISTRATORS OF TROUBLED London cab manufacturer, Manganese Bronze Holdings, have announced 156 redundancies at the firm via a news release (see below) this afternoon (31.10.12).
108 staff have been retained or laid off, with the 12 laid off sent home on partial pay.
After several years of losses, Manganese Bronze has recently had to issue a product recall following the identification of a steering box fault. The recall may have been the final blow, but the joint-administrators will be seeking a buyer for the makers of London's black cab taxi icon.
Full News Release:
"Update from the Joint Administrators of Manganese Bronze Holdings
The administrators have today met with staff to explain that, regrettably, there will be 156 redundancies with immediate effect.
Matthew Hammond, joint administrator and PwC partner, said:
“Regretfully, without financial support to overcome the Group's operational issues we have had to make staff redundancies. While the steering box recall remains, there is a voluntary suspension on vehicle sales, and we are now concentrating all resources on testing the solution to the steering fault. We have retained sufficient numbers of staff across the dealership, head office and production network to address the operational, technical and financial circumstances that the business faces."
In total 108 staff have been retained or laid off. The 12 that have been laid off have been sent home on partial pay and will be called back into work should vehicle production start up again.
Of the 176 employees based at the Group’s head office and manufacturing site in Coventry, 99 have been made redundant and of the 98 employees based at the dealerships in London, Manchester, Leeds, Edinburgh, Glasgow and Coventry, 57 have been made redundant.
The retained staff based in Coventry will continue to focus on finding a solution for the steering fault alongside head office resource to keep the business running. The remaining staff based in the dealerships across the UK will continue to service taxis and will be involved in the steering box refit once a solution has been found."