A UK engineering firm has plunged into administration with all 53 workers set to lose their jobs following a large downturn in demand.
A North Sea oil-adjacent enterprise has closed with all employees laid off (inventory picture) (Picture: Getty)
All employees at a UK engineering agency have misplaced their jobs after the corporate plunged into administration. Staff at Glacier Vitality Manufacturing Restricted have been made conscious of the redundancy interval earlier this week, with the corporate positioned into administration by its Scottish proprietor. The corporate confirmed 53 jobs had been misplaced on account of the closure.
The vitality business engineer and producer is a part of the Glacier Group, whose headquarters are in Aberdeen. Whereas the group will proceed to supply mechanical options and inspection service divisions, the Glacier Vitality Manufacturing Restricted arm of the enterprise has been closed following a downturn in demand within the North Sea oil and fuel sector.
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The guardian firm mentioned in an administration assertion: “We now have made the troublesome determination to shut our manufacturing facility in Stockton on Tees, with certainly one of our entities, Glacier Vitality Manufacturing Restricted, being positioned into administration.
“The Stockton facility was beforehand Francis Brown, which we acquired out of administration in August 2024 in a pre-pack deal.
“Regardless of vital efforts to turnaround the enterprise, attributable to market challenges and the present fiscal regime, exercise ranges within the North Sea oil and fuel market have been considerably impacted and new vitality markets gradual to materialise.”
The corporate started to maintain monetary losses from as early as December 2024. The assertion added that substantial losses within the division “have sadly turn into unsustainable.”
The assertion continues: “As a bunch, we are going to proceed to supply engineering, manufacture, restore and refurbishment of warmth switch gear, specialist onsite machining companies and inspection companies for vitality and industrial markets.”
Adele MacLeod and Clare Boardman, of Teneo Monetary Advisory, have been appointed as joint directors in October and have now offered the primary directors’ report, Herald Scotland reported.
They mentioned: “Shortly following incorporation, the corporate skilled a softening of buying and selling situations and a major lower within the variety of large-scale capital expenditure tasks inside conventional oil and fuel markets, with prospects specializing in repairs and upkeep to present infrastructure fairly than new investments.
“On current data, it stays unlikely that adequate funds might be realised to allow a distribution to be made to unsecured collectors.”
The agency owed a complete of £133,000 when it was positioned into administration. Secured creditor IGF Enterprise Credit score Restricted was owed £26,000.
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