A Bonnyrigg-based manufacturer of sustainable luxury modular accommodation including glamping pods has fallen into administration, with all 29 staff made redundant, with cost pressures and the “time burden” of exporting to the European Union cited as factors.

Blair Nimmo and Alistair McAlinden from Interpath Advisory have been appointed joint administrators to Armadilla today.

Founded in 2010, the company designs and manufactures the modular accommodation, delivering this to clients across the education and high-end leisure and wellness sectors.

The company had built a strong order book, with significant projects in the pipeline in Scotland, the Algarve, the USA and Dubai, the joint administrators noted.

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They added: “Despite this, however, in recent times the company experienced significant cashflow challenges as a result of order deferrals in the wake of the pandemic, the rising cost of raw materials and the cost and time burden of exporting to the EU.

“Despite the exhaustive efforts of the management team, with cashflow pressures intensifying, the directors had no option but to take the very difficult decision to seek the appointment of administrators. The business has now ceased to trade and, as such, it is with regret that the joint administrators have made the company’s 29 employees redundant. The administrators will be providing support to all impacted employees to help them submit redundancy claims and ensure they can access the support services of agencies such as Partnership Action for Continuing Employment.”

Mr Nimmo said: “Armadilla had forged a reputation for its distinctive, environmentally sustainable and high-quality range of luxury accommodation pods, winning the 2020 Queen’s Award for Enterprise in the Innovation category. Unfortunately however, the disruption encountered by the business during the Covid-19 pandemic, coupled with soaring costs, meant that the business was no longer viable in its current form.”

Mr McAlinden, head of Interpath Advisory Scotland, said: “We are now looking to find a buyer for the business and its assets, including its intellectual property, structural designs, architectural drawings and CAD (computer-aided design) tooling, the current work-in-progress and the customer order book. Given Amardilla’s pedigree, we very much hope to be able to secure a future for the business, and so would ask any interested parties to make contact with us at the earliest opportunity.”