Jobs axed as firm enters administration
ONE of the longest-established firms in Ipswich has gone into administration with the likely loss of around 80 jobs.Mechanical and electrical installation specialist Warners M&E Ltd, which can trace its origins back to 1845, called in administrators yesterday as a result of cash-flow problems.
ONE of the longest-established firms in Ipswich has gone into administration with the likely loss of around 80 jobs.
Mechanical and electrical installation specialist Warners M&E Ltd, which can trace its origins back to 1845, called in administrators yesterday as a result of cash-flow problems.
Around half of the company's 90 employees face redundancy with immediate effect and most of those remaining will be kept on only for a matter of weeks while the company winds down.
However, it is understood that between 10 and a dozen people are likely to transfer to new roles within Warners' parent group, Haymills.
Joint administrator David Merrygold, who corporate recovery partner at accountants and business advisers PKF, said yesterday: “Warners is feeling the effects of the downturn in the construction industry.
“We are seeing employers and main contractors not paying bills on time for the work the smaller sub contractors have done. This in turn leads to cash flow problems, as is the case with Warners.”
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Andrew Harper, managing director of Warners, added: “Our parent company Haymills took the decision not to support its subsidiary company Warners M&E Ltd. This left us with no option but to call in the administrators.”
Mr Merrygold said the administrators would now be talking to contractors for which Warners was carrying out work, and to some of its rival companies, with a view to assigning some of the current contracts.
However, he said there was not prospect of the company being sold as a going concern, or being able to continue to trade on its own.
In recent years, Warners has undertaken projects across the East of England region and in London, typically in the £50,000 to £1million value range. Clients have included BT, American Airlines, IP City, West Suffolk Hospital, Range Stores and the House of Lords.