Red7Marine group goes into administration with loss of more than 40 jobs
- Credit: Archant
More than 50 jobs have been saved at a marine civil engineering company which has been sold following its collapse into administration – but a further 47 people have been made redundant with a sister company have ceased trading.
Administrators from accountancy group EY were appointed yesterday at Red7Marine Group Ltd, Red7Marine Ltd and Red7Marine Offshore Ltd.
The companies, which provide a range of engineering services to sectors including offshore oil and gas and marine renewables, operate in two trading divisions – Inland & Coastal (I&C), which is based at Wrabness, near Harwich, and also has offices in Ipswich, and Offshore, which is based in Great Yarmouth.
“Shortly following their appointment, the administrators concluded a sale of the business and assets of I&C to I&C Limited, a new entity backed by a private investor, preserving 54 jobs,” said the administrators in a statement today.
However, they added: “The group’s Offshore business did not form part of the sale. Offshore ceased trading on appointment of the administrators, resulting in 47 redundancies.”
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Nine employees have been retained by Offshore at its site in Great Yarmouth to assist the administrators in winding down the business and realising value in the assets of the Offshore division.
Tom Jack, joint administrator together with EY colleagues Sam Woodward and John Sumption, said: “In the period leading up to the administration, the group’s cash flows came under significant strain due to falling demand for the group’s services as a result of the collapse of the oil price, ongoing investment in the group’s fleet and a number of unexpected charges.
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“Despite attempts to recapitalise the group, the directors were unable to do so and have been seeking alternative investment to support a turnaround of the business. This was not possible to achieve on a solvent basis and the group has therefore been placed into administration by the directors.
“The sale of I&C secures the future of 54 employees, ensures loyal customers will continue to be supported and preserves this profitable business as a going concern.”
But, he added: “It is with regret that the Offshore business could not be sold and has ceased trading. We will support all employees affected by redundancy at this difficult time, including helping them to make claims for amounts owing to them from the Redundancy Payments Service.”