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.
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.