Scores of jobs lost as McKechnie Brass collapses

ALDRIDGE-based manufacturer McKechnie Brass has gone into administration with the immediate loss of 60 of its 75 strong workforce.

The firm – which manufactures alloy metals for the automotive, electronics, energy and construction industries – called in administrator Duff & Phelps on December 30, saying the fluctuating prices of scrap brass had put margins under pressure and led to financial losses, understood to be £1.2m over 12 months.

Administrators made 60 of the 75-strong workforce redundant, and are said to be in talks with several parties about selling the business.

The firm has a history stretching back to 1871 and has been in the West Midlands since 1894.

McKechnie Brass appointed John Whitfield of Duff & Phelps – based in Birmingham’s Newhall Street – as administrator.

The firm was previously bought out of administration in Autumn 2011 when asset-based lender Centric Commercial Finance provided a £6.5m funding package to the firm.

The deal also involved private investment firm GIL Investments – the investment arm of West Midlands-based industrial conglomerate Grove Industries.

It was a welcome boost after McKechnie was placed under the control of administrators at Birmingham-based Sanderlings in July 2011.

Centric devised a customised mix of invoice discounting, stock finance and a loan for the business.