Jobs lost as manufacturer enters administration following Network Rail contract delay

A company which supplied products to the rail infrastructure market has ceased trading after being hit by a delay on a major Network Rail contract.

Pipe & Piling Supplies manufactured steel foundation piles and overhead structures, primarily for the rail infrastructure market, and was based in Glenrothes, Fife, and Bridlington, East Yorkshire.

The company had 16 staff with a turnover of £23m in the year to February 2017 but had been forced to make 10 members of staff redundant in recent weeks.

It has now ceased trading with immediate effect, resulting in the remaining six members of staff being made redundant.

Tom MacLennan and Iain Fraser, partners at specialist business advisory firm FRP Advisory, have been appointed as joint administrators.

MacLennan said: “Pipe and Piling Supplies Limited was a well-established provider to the rail infrastructure market and had been contracted to work on the major Network Rail infrastructure maintenance contract. Unfortunately, after a delay in this contract the company was forced to seek to diversify its activities. This has ultimately proved unsuccessful, resulting in significant cashflow difficulties which unfortunately could not be resolved.

“As joint administrators we have appointed specialist construction agents to assist in reviewing the company’s remaining contracts and are focused on maximising asset realisations and debtor collections, as well as working closely with all agencies, including the Redundancy Payments Office, to ensure that employees receive every support at this difficult time.”

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