117 jobs lost as engineering group enters administration

The loss of two major contracts combined with the decline in oil and gas has forced a Teesside engineering company into administration with the loss of more than 110 jobs.

Administrators from Begbies Traynor were called in on 23 February for the Cordell Group and its subsidiary Cordell Southern Technical Services.

Cordell Group made 50 redundancies on 3 February prior to the commencement of the administration.

A further 57 redundancies were made upon it entering administration, as well as 10 staff at its CSTS subsidiary losing their jobs.

The administrators are continuing to trade with the group’s major customers to complete a number of existing projects while they consider the options for the business and the remaining 170 staff.

Joint administrator along with Bob Maxwell, Lee Lockwood said: “Unfortunately, the group has suffered from the decline in the oil and gas sector over the past couple of years, and whilst seeking to diversify into other sectors, it suffered losses on two contracts from which its financial problems arose. Significant interest in the group has been expressed by potential buyers or investors, but no sale or investment has been concluded to date.”

Formed in 2000 with the merger of Darlington Engineering (formed 1983) and Cordforth Group (formed 1976), the Cordell Group is an engineering design, fabrication and construction contractor.

Its subsidiary, CSTS Limited, provides a comprehensive range of electrical engineering services for building management systems.

The Cordell Group has additional sites in Maidstone, Kent, Redcar, Thornaby-on-Tees and Saudi Arabia.

 

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