120-year-old British wheel factory at risk of closure

A 120-year-old British wheel factory is at risk of closure after its German owners called in the administrators.

Moveero, which makes wheels, rims and hubs for off-road vehicles used in farming and construction, said its UK arm had become insolvent on Thursday, putting around 250 jobs at risk.

Administrators from Interpath have been appointed to run the struggling business, which trades from a historic factory in Telford, Shropshire.

Its customers include JCB and Caterpillar, among others, with its products used for the wheels of everything from earthmovers to airport tugs and tree harvesters.

The business, dating back to 1908, was part of GKN’s automotive division but was sold to German private equity firm Aurelius in 2020.

Aurelius was also behind a disastrous buyout of ethical beauty chain the Body Shop, which collapsed just five months after its new owners took control.

In a statement on Thursday, Ryan Grant, Chris Pole and Sam Birchall, administrators at Interpath, said Moveero had been battling “significant operational challenges”, including weak demand for its products and tough competition.

Rising interest rates have made buying heavy equipment more difficult for farmers and construction companies, along with trade tariffs imposed on imports by the likes of the US and China.

Moveero Ltd reported a loss of £4.4m in 2024, the latest year for which there are accounts, after sales fell 26pc to £32.6m.

The wider Moveero group, which includes businesses in the US and Denmark, continues to operate profitably and is not insolvent.

In the UK, administrators have been appointed to “protect the interests of creditors”.

A statement said this would “allow the UK businesses to continue trading while buyers for the businesses and their assets are pursued, with all staff retained during this period”.

David Geraghty, Moveero’s chief executive, said the company’s customers had also provided emergency funding that had “given us the additional time we need to continue to explore the options available”.

Mr Grant, the managing director at Interpath, added: “We have been pleased with the positive conversations and financial support provided by customers in recent days, which has ultimately provided the businesses with a crucial lifeline, enabling us to trade while we explore options for the business.”

Interpath said its “immediate priority is to seek buyers for the UK businesses and assets” and urged potential buyers to come forward as soon as possible.

Aurelius has been approached for comment.

[Source: Daily Telegraph]