Oil and gas sector specialist in administration following ‘accounting irregularities’
North Yorkshire-based Pipeline Engineering & Supply Co, which employed 83 staff, has fallen into administration and has ceased to trade with immediate effect.
Jimmy Saunders and Michael Lennon, both of Kroll, were appointed joint administrators of the business today – 14 April. All the staff have been made redundant.
The company is a UK subsidiary of Circor International Inc, a group listed on the New York Stock Exchange.
The company was headquartered in Catterick and operated predominantly in the oil and gas sector. It also had operations in Aberdeen and Dubai.
It was well established, operating for over 50 years and was a world leader in the design, manufacture and testing of pipeline pigging and flow assurance products.
Circor International Inc had recently reported accounting irregularities in financial statements of the business, and this led to a detailed strategic review of options and underlying performance. This included a sale process for the company and its business and assets, but no buyer was forthcoming.
Saunders said: “The business was loss making, as its cost base and infrastructure were not aligned to revenues.
“The Group has made substantial investment into the company but together with the current economic uncertainty and cost inflation in manufacturing the Group was unfortunately unable to continue to provide financial support.”
The joint administrators are now working to provide support to the employees. Their appointment has no impact on the remainder of Circor International Inc’s businesses in the UK.