Around 90 jobs have been lost after Shaftec Automotive Components entered administration and ceased trading.
Anthony Collier and Richard Goodall of FRP Advisory were appointed as joint administrators to the Birmingham-based company.
The business, which manufactured drive, steering and braking components for passenger cars, had been facing sustained financial pressure amid difficult trading conditions in the automotive components sector, including rising costs and increased competition from lower-cost imports.
Despite an extensive marketing process, no buyer was secured, and the company has now closed.
The majority of the 90 employees have been made redundant, with a small number of employees retained temporarily to assist with winding down operations.
Support is being provided to affected staff, including assistance with applications to the Redundancy Payments Service.
Collier said: “Shaftec was a well-respected name in the UK automotive aftermarket with a strong heritage spanning more than four decades. Regrettably, it has come up against strong economic headwinds felt across the industry and, despite significant efforts to secure a sale, it was not possible to find a buyer for the business.
“Our immediate focus is on supporting affected employees and ensuring an orderly wind-down of the Company’s affairs.”
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