BSA Machine Tools enters administration

WELL-known Birmingham manufacturer BSA Machine Tools has entered administration. 

Accountancy and advisory firm EY have been appointed administrators to the business. EY’s Tom Lukic and Tom Jack were appointed joint administrators.

BSA Machine Tools is a 100% subsidiary of Automation Investments Limited and trades as a manufacturer of high precision and made-to-order lathes, selling predominantly to Asia and the American markets.

It operates from a site in Kitts Green and employs 29 people. Its managing director is Steve Brittan, a former president of Birmingham Chamber of Commerce.

Shortly following their appointment, the administrators made nine redundancies and are actively engaging with parties interested in buying the whole or part of the business and/or assets of the business.

Lukic said: “In the period leading up to the administration, the company’s cash flows came under significant strain due to falling demand for the company’s services as a result of adverse market conditions, including the falling price of oil, and delays and difficulties encountered in completing a major contract.

“We continue to actively engage with potential buyers of the business and/or assets of the business. Should it become evident that there is no genuine interest in the business, we will regrettably have no alternative other than to implement a rapid wind down of the business and operations of the company.

“We will support all employees affected by redundancy at this difficult time, including helping them to make claims for amounts owing to them from the Redundancy Payments Service.”

Automation Investments Limited is not in administration or subject to formal insolvency proceedings.

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