109 jobs lost as engineering business falls into administration

Sheffield firm Davy Markham, which designs, manufactures and fabricates heavy engineering components and assemblies for the tunnelling, mining, steel and power generation industries, has gone into administration.

It has been confirmed that 109 of the 140 workforce at the company, which has been in operation about 200 years and is based in Darnall, have been made redundant with immediate effect.

The company had faced a number of financial and operational challenges in recent months, which have caused cash-flow issues and resulted in it entering administration.

Yasmin Bhikha and John Lowe from specialist business advisory firm FRP Advisory have been appointed joint administrators.

Bhikha said: “Operating for almost 200 years, DavyMarkham is a heritage British business which has been involved in some of the country’s most prominent infrastructure projects. Sadly the Company’s financial position has forced it into administration. Over the coming days we will be working closely with directors to evaluate all possible routes forward and providing support to affected employees during this challenging period.”

Davy Markham, which designed and delivered parts for huge global civil engineering projects, had been taken over by Hughes Armstrong Industries and Swiss financier Clearsight.

Meanwhile, union Unite said Davy Markham had treated the workforce “with contempt.”

Unite regional officer Harriet Eisner said: “What we have here is another example of irresponsible industrial management with the dedicated workers paying with their jobs and the taxpayer picking up the tab.

“The company’s notice of redundancies and calling in of the administrators happened without consultation this week. This was a workforce who had time and time again taken cuts to their terms and conditions to keep the company going.

“The workforce has been treated appallingly and with contempt during this whole process, while the directors appear to have walked off into the sunset with owner Hughes Armstrong Industries.

“The directors failed to pay wages for the last month and have not honoured pension contributions for their employees, and even deducted the workers’ own pension contributions and failed to pay them on to the pension fund.

“More than 100 skilled workers are now unemployed in Sheffield and are having to apply to the government for their statutory rights.

“Yet again, a company has been run into the ground, but the management and directors get to walk away scot free. This is an all too familiar tale in modern Britain.

“Our members will have to rely on the taxpayer to get them their minimum redundancy payout and will have to take the company to court for failing to consult with them over the redundancies.

“This is a tragedy for UK engineering and manufacturing generally, and, in particular, for Sheffield with its proud engineering tradition.

“Unite will be guiding our members through the process of claiming their redundancy payments, outstanding wages and pension contributions.  We will also be seeking a protective award from the courts for lack of consultation over the redundancies.”