76 jobs saved at stricken steel casting manufacturer
Part of an East Midlands-based manufacturing group that fell into administration after Covid-related struggles impacted its financial stability has been sold to a Derbyshire rival.
Ross Connock and Edward Williams of PwC were appointed joint administrators of Concord Limited, BAS Castings Limited and HI Quality Steel Castings Limited (HIQ) on 30 March.
The group, which produces iron and steel castings at sites in Pinxton (BAS) and Whittington Moor, near Chesterfield (HIQ), was hit by what the administrators described as a “period of underperformance” brought on by the pandemic. As a result, it was no longer able to support a legacy defined pension scheme, and to compound its woes, the group subsequently struggled with rising energy costs and inflation.
The aforementioned pension scheme was wound up despite “extensive” work around options, prompting the directors to call in administrators.
Connock and Williams quickly found a buyer for the business and assets of HIQ in the shape of Chesterfield Metal Technologies Limited – a subsidiary of William Cook Holdings. The deal secured all 76 jobs at the firm.
However, due to “limited interest”, 59 people have been made redundant at BAS, with 18 employees retained to assist the administrators.
It is unclear what fate awaits staff at Concord Limited.
Joint administrator Eddie Williams of PwC said: “I am pleased that our significant efforts since appointment have been able to save so many jobs at HIQ in a sector already experiencing a number of economic challenges. However it is very disappointing that having exhausted all options around a sale or funding, we have no alternative other than to announce this level of redundancies at BAS.
“We understand that this is a very difficult time for the employees and we will be providing support to the employees impacted over the coming weeks.”
Chris Seymour, group managing director of William Cook Holdings, said: “We are delighted that we’ve managed to work with the joint administrators to complete the purchase of the majority of HIQ’s business and assets. We now look forward to stabilising the business utilising the strength and depth from across the rest of the William Cook group and working with HIQ’s employees who will be key to future growth and profitability.”
Creditors and suppliers of all three companies have been contacted by the administrators.
