West Yorkshire engineering firm falls into administration
Administrators were called in at West Yorkshire machining business Valvetek earlier this month, but 20 jobs were saved in the process.
The 14 year-old company provided engineering services to the oil and gas industry, specialising in pipe and valve technology. It operated from a 20,000 sq ft facility at Rosemount Works on Huddersfield Road in Elland.
However over the last 18 months it experienced a “significant” reduction in demand and turnover. It suffered like many European businesses engaged in providing technical support to the oil and gas industry.
Valvetek racked up a significant debt to HMRC that it was unable to pay, resulting in the presentation of a winding-up petition.
Partners Charles Brook and Allan Cadman of Poppleton & Appleby’s Huddersfield office were appointed joint administrators of the company by its bank at the request of the directors on 14 July 2017.
Brook undertook a detailed review of options to preserve value in the business and assets, the directors accepted advice that the company’s bank should be invited to appoint administrators under the terms of its security.
The company’s 20 staff were transferred to a sister company prior to the involvement of administrators.
Brook said the company had continued to receive support from its major customers, suppliers and landlord. It has continued to trade with assistance from directors and the sister company.
He said that “steps have been taken by us to pursue a solution that achieves the best outcome for creditors,” and that the disposal of the company’s business and assets as a going concern will be completed in the next 10 days.
