Mon, 05 Jun 2017 | ADMINISTRATION
An engineering company based in Leicestershire that was sold out of administration in a pre-pack deal 6 months ago has slipped back into insolvency.
Midlands Metal Fabrications was established after Midland Metal Products in Desford was hit by a decline in orders and a shortage of skilled workers to meet the demand, resulting in administrators being called in.
However, the business and assets were sold to Midland Metal Fabrications Ltd on the same day in a deal which safeguarded 84 jobs.
At the time, Kayvan Namazi of Midland Metal Fabrications said: “I’m delighted to have concluded a purchase of the Midland Metal Products Limited business. There is much work to do, but I see a great future for the business with lots of potential.”
However, barely six months on and administrators have been appointed to the new firm.
Restructuring specialists from Duff & Phelps have been working with Midland Metal Fabrications for a "number of weeks" in a bid to find a solvent solution after it ran into difficulties, but the company's order book had not increased as quickly as anticipated following the rescue deal in November, and they have as yet failed to find a concerned buyer.
The Duff & Phelps spokesman said the firm would continue to seek a buyer for the business.
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