70 jobs lost after dispute forces contractor into administration

A Doncaster-based mechanical and electrical engineering company, Mechanical Facilities Services, (MechFS) has fallen into administration.

The company had come under increasing cashflow pressure in the weeks prior to the appointment of administrators, as a result of a dispute on a large contract.

As no resolution could be reached imminently, the directors said they had made the “difficult decision” to cease to trade and place the company into administration.

The business had 75 employees upon appointment, of which six have been retained to assist the joint administrators with the wind-down of operations. The remaining 69 staff were made redundant.

As well as its base in Beckingham, Doncaster, MechFS also had five other leasehold premises across the UK.

Founded in 2008, it operated as a mechanical and electrical contractor offering engineering solutions nationwide and through its sister companies in Ireland and Germany.

More recently, the majority of the Group’s work had been as an M&E sub-contractor in the building of large warehouse units. It had a turnover of more than £50m.

Howard Smith and Chris Pole, of Interpath Advisory, were appointed joint administrators on 5 April 2022.

They are now working to realise the company’s assets which include – but are not limited to – book debts, a freehold property, vehicles, tooling and office equipment.

Smith, managing director at Interpath Advisory and joint administrator, said: “Our immediate priority is to assist those employees who have been made redundant in making claims to the Redundancy Payments Service.

“We will also be seeking purchasers for the company’s assets, including its properties, plant, machinery and vehicles.”