56 jobs axed as engineering firm calls in administrators
Some 56 jobs have been lost after Diana Frangou and Gareth Harris of RSM UK Restructuring Advisory were appointed as joint administrators of First Components, a precision engineering business based in Brierley Hill.
The business, which operated from premises in Brierley Hill for over 18 years, provided specialist precision engineering for a wide range of industries including aerospace, automotive, medical through to electrical, white goods and general engineering. The company had lost a significant contract which was having an impact on the company’s cashflow and also recently went through a change in ownership which impacted its ability to continue to trade.
Due to the financial position of the company, trade has been suspended and the company’s 56 employees were immediately made redundant. The administrators are seeking a buyer for the business or say they will look to maximise realisations from the company’s assets, to pay creditors.
Frangou said: “The cashflow issues coupled with the change in ownership and structure, resulted in Administrators being appointed, to protect not only the creditors interests but most importantly ensure the employees were not left in abeyance. Regrettably, we have had to make the entire workforce redundant, and our first priority is to assist them both with making their claims from the Redundancy Payments Office and offering general support and advice in these difficult circumstances.”