Interpath administrators seek buyer for to automotive firm Rimstock
Rimstock, a UK manufacturer of alloy wheels, has fallen into administration after a period of financial difficulties. Administrators from Interpath Advisory have been installed to assess interest in acquiring the business.
Located in West Bromwich, Rimstock is the UK’s last remaining wheel manufacturer – specialising in the production of alloy wheels to supply some of the world’s most recognisable automotive brands. Distinctively, the Company is the only manufacturer in Europe with specialist rotary forge capabilities, which allows the business to produce stronger and more complex wheel designs.
Despite this unique positioning, recently, the firm had encountered financial struggles. The company was initally impacted by Covid-19, which forced it to close for an extended period of time. As a result, its aluminium smelter was closed down, leading to the loss of 135 skilled roles. The company is reported to have seen a decline in sales since then, something exacerbated by the economic turbulence of the last 12 months, while the cost of raw materials skyrocketed.
Rimstock’s management initially engaged Interpath as advisors during discussions over funding with key stakeholders and investors. However, when these negotiations proved unsuccessful, management placed the company into administration, and tasked professionals Chris Pole and Ryan Grant with overseeing the process.
There have been no redundancies amongst the company’s 74 staff while options are explored. At present, the administrators are working with management and key customers to ascertain the level of support for ongoing trading, while also reviewing all of the options for the business.
Pole, who is a managing director at Interpath, commented, “Rimstock is the UK’s only alloy wheel manufacturer, supplying into some of the world’s best-known luxury car brands. Unfortunately, however, the many challenges facing industrial manufacturers across the country, including rising raw material costs, have proved to be insurmountable in this particular case.”
The joint administrators added that their immediate priority was to understand customer requirements for future supply, and assess whether there is any interest in the business as a going concern. Any parties which wish to express an interest are advised to contact them as soon as possible.
Established in May 2021 following a private equity-backed carve-out from KPMG (valued at £350 million), Interpath is an advisory firm with currently 600 staff across the UK and Ireland. The firm helps clients across sectors with restructuring and insolvency work, and increasingly with other financial advisory services.
