The Courier & Advertiser (Angus and Dundee)
Shock closure of firm with the loss of 42 jobs
PRESSUREFAB Employees received letters while firm was closed for holiday
Dundee engineering company Pressure-Fab has closed with the loss of 42 jobs.
Employees have received letters informing them of the shock development while the Baird Avenue firm was closed for the summer holiday.
Blair Nimmo and Tony Friar of KPMG LLP were appointed joint administrators of the firm and also of its parent company, Twickler Industries Limited, and a further four group companies.
The said that despite an annual turnover of around £5.3m as recently as the year ending 31 January 2015, the company has been significantly impacted by the oil and gas downturn.
A sharp fall in revenues has resulted in insurmountable cash flow difficulties, ultimately leading to the administration appointment.
Over the past 18 months the group, led by managing director Hermann Twickler, reduced costs in an attempt to mitigate the effects of reducing activity levels.
The headcount fell from approximately 100 in 2015, with the remaining 42 employees made redundant shortly before the group entered administration.
The joint administrators said they will help the employees claim their entitlements and will enlist their support in realising the group’s assets.
Blair Nimmo, head of restructuring for KPMG in the UK said: “Pressure-Fab Limited is the latest firm to fall victim to challenging trading conditions in the oil and gas sector.
“As client orders were cancelled or postponed, the number of new business enquiries reduced significantly, leaving the company with no option other than to cease trading. We are currently reviewing the company’s financial position as we seek to complete certain orders and realise stock.
“The company is widely considered to be a leading manufacturer for the sector and we anticipate there will be interest in the company’s infrastructure including its property, plant and intellectual property.”
He encouraged parties interested in acquiring the company’s assets to make contact as soon as possible.
Last week, just before the firm closed for the summer, the employees told they were being laid off due to a downturn in the industry.
One employee, who declined to be identified, said he was concerned and puzzled at the latest turn of events.
“Two days after we were laid off the firm ceased trading, according to the letter we have just received,” he stated.
“Did they not know that the firm would soon stop trading?”