Jobs lost as electric engineering firm collapses into administration

Almost 50 jobs have been lost after an electrical engineering company founded more than 100 years ago collapsed into administration.

Heeco, The Humber Electrical Engineering Company, is a specialist electrical design company based in Hull. It designed and manufactured custom-built control panels, LV switchboards and motor control centres for use in large-scale projects for industrial divisions, marine sections and the Ministry of Defence.

The company had faced severe financial pressures in recent months following the culmination of previous contracts and delays in the receipt and start of new contracts.

This led to a hole in production which caused “unsurmountable cashflow issues”.

Andy Haslam, Tonya Allison and Phil Pearce of specialist business advisory firm FRP Advisory have been appointed joint administrators.

FRP Advisory says it had been working closely with the business in undertaking a sale process in recent weeks. A proposed purchaser had been identified and undertook several weeks of due diligence, however, this interest was withdrawn earlier this week leaving the directors with no option but to place the company into administration.

On appointment, the company ceased trading with immediate effect and all 47 members of staff were made redundant.

Haslam said: “Every effort was made to save the company in recent weeks, however with no prospect of a purchase, the only remaining option was to close the business.

“We are now working with the stakeholders to support all affected employees at what we know will be an extremely difficult period. In the meantime, we would urge any parties interested in acquiring the assets to contact us as soon as possible.”