Published: 24th September 2015
Mayfly Containers Ltd, a specialist designer and maker of industrial containers, has entered administration in recent days and has already begun the process of making members of its workforce redundant.
Just less than 60 employees of the business are faced with the prospect of losing their jobs as administrators look for ways to repay the company’s creditors as fully as possible.
Mayfly Containers was founded in 1983 in the Derbyshire town of Chesterfield but it has seen a notable downturn in demand for its products in recent quarters.
Administrators were appointed to the business earlier this month, with the downturn within the oil and gas industries both in the UK and internationally cited as a key reason for a fall in demand and revenues for the company.
“The turmoil in the oil and gas sector has had a direct impact on the company and customer orders have significantly reduced,” said Clare Boardman, one of the appointed administrators.
“Unfortunately, without this revenue, or any visibility on its return, the ongoing trade of the company is no longer viable. As a result the directors have made the decision to place the company into administration.”
According to reports, there had initially been hope that short-term cash flow solutions might have kept Mayfly in business but the loss of an important contract and a lack of revenues coming into the company meant continuing to operate was soon deemed non-viable.
Mayfly secured a new banking facility with HSBC and undertook a recruitment drive aimed at underpinning its international expansion in 2012 but an over reliance on custom among offshore oil and gas companies has become a real problem in recent quarters.
A managed wind-down of the business is now being undertaken, with some employees being kept on to support that process while others are made redundant.
Expectations are that the entire of the company’s 57-strong workforce will eventually be let go as the business is wound down.
Statements from the company’s joint administrators said: “The joint administrators are now looking to maximise realisations for creditors through the sale of Mayfly’s assets, which comprise a freehold factory, offices an engineering plant and machinery.” We have an extensive network of 78 offices offering confidential director support across the UK.