Brothers take control after rivals collapse

Jan 31 2008 by Graeme King, The Journal

THE two brothers who founded Paramount Windows have completed two deals to buy the assets of collapsed rivals Budget and Pennine in their bid to be the region’s “big player”.

Graham and David Auld, from Cramlington, now have a very strong position in the North-East windows and doors marketplace and are said to be having meetings this week to decide how to structure their enlarged business.

The two men, aged 45 and 44, sold the majority of Paramount Windows to three senior managers earlier this month while retaining small shareholdings and keeping their seats on the board to act as consultants.

Paramount Windows is in turn owned by a company called Crownfold, controlled by the Aulds. With the brothers now effectively controlling three major North-East windows brands in Paramount, Pennine and Budget, they will be able to leverage the scale of their business to build an even stronger position in the North-East marketplace.

Their nearest regional rival is probably Warmseal Windows, led by managing director Kevin Taylor from a base in Throckley in the far west of Newcastle.

Last night Paramount director Alan Oliver said: “There has been a lot happening in our industry in the last couple of weeks, with Budget and Pennine going bust, and us completing the MBO from Graham and David.

“So opportunities have come along, and now some of the assets in the Budget and Pennine businesses have been bought by the Auld brothers and they will be introduced into the Crownfold companies.

“We will find a way to have a group of companies, with two or three brands within it, but we are still in the early days of sorting it out. Details are a bit vague. They are weighing up the options on what they do with those companies.”

With both Stockton-based Budget Windows and Tyneside’s Pennine having been run by administrators in recent weeks, neither has many staff remaining after a total of 200 job losses, so what the Auld brothers have bought is mainly manufacturing machines and the value of the brand names.

When the Aulds sold Paramount earlier this month, the company was acquired by Mr Oliver and former regional sales managers Carl Birkenshaw and Derek McLaren, who immediately unveiled ambitious expansion plans to open further sites across the North-East and recruit a further 30 staff.

Paramount, with 125 staff, is different to Pennine and Budget in that it does not manufacture its own products, preferring to rely on suppliers Sierra Windows.

It currently has six sites across the region in Ponteland, Benton, Ashington, Cramlington, Carlisle and the Team Valley head office.

Mr Oliver added: “This is a consolidation. Two big players in the marketplace have gone.We will be a big player in the North-East marketplace and we have to make sure we get that right.”

The administration of Budget Windows was handled by PricewaterhouseCoopers, while Pennine Windows was run by BDO Stoy Hayward.