Successful sale of hydraulics company saves 16 jobs
Mechanical engineering company specialising in the repair and testing of hydraulics. The business operates from a specialist workshop and at the time of the administration the company had an annual turnover of £1.5m.
Following a series of exceptional circumstances the company experienced crippling cash flow issues. As a result of the downturn of the oil and gas industry there was a decline in orders from offshore customers. The company also suffered the loss of a key client who set up as a competitor; this loss was compounded when several key members of staff defected to this newly formed rival company.
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On the recommendation of our Insolvency Practitioners, the company was placed into administration and the company continued to trade while a buyer was located, and a sale negotiated.
Following an accelerated marketing process, a sale of the business and its assets was agreed and subsequently completed. This sale ensured the continuation of the company and in the process safeguarded the jobs of 16 employees.