Armadilla, the Queen’s Award winning Scottish designer and manufacturer of luxury pods, has been forced into administration after struggling with cash flow, the impact of the pandemic and Brexit red tape.

Blair Nimmo and Alistair McAlinden from Interpath Advisory has appointed joint administrators to run the company’s affairs and find a buyer. All 29 employees have been laid off.

The firm was founded in 2010 by managing director Archie Hunter, and his son Ross Hunter, chief executive. It is based in Bonnyrigg, near Edinburgh, creating modular accommodation 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 US and Dubai.

However, 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 difficult decision to seek the appointment of administrators.

The business has now ceased to trade and 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, chief executive of Interpath Advisory and joint administrator, said: “Armadilla had forged a reputation for its distinctive, environmentally sustainable and high-quality range of luxury accommodation pods.

The company won the Queen’s Award for Enterprise in the Innovation category as recently as 2020 and at the time employed 40 staff.

“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.”

Alistair McAlinden, head of Interpath Advisory Scotland and joint administrator, said: “We are now looking to find a buyer for the business and its assets, including its intellectual property, 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.”