Thu, 27 Feb 2014 | ADMINISTRATION
Mustang Marine, a boatbuilding and repair firm, has stated that it is in danger of going into administration with a potential 130 jobs at stake.
Based at Pembroke Port, the company opened a new £1.5 million construction hall as recently as November 2013. Despite this, Mustang Marine then only narrowly avoided closure before Christmas as it recorded significant losses on several key contracts that had overrun.
The firm has already received millions of pounds worth of funding from the Milford Haven Port Project but it had been hoping that further funding from the same organisation, along with the Welsh government and an external third party, would help secure its long-term future.
However, the third party that looked set to be involved in this rescue package has recently withdrawn its funding. As such, Mustang Marine is now looking for a new investor.
In an announcement to staff yesterday (26 February), Mustang Marine’s interim managing director Stewart Graves said: “Unfortunately last week, after completing its review of the business, the external party withdrew its offer and without that party the long-term funding package could not proceed.
He went on to explain that the directors and professional advisers were still working to find further funding for the rescue package but without it the company will go into administration “later this week or early next week”.
Both the Milford Haven Port and Welsh government have stated that they will continue to do all they can to help Mustang Marine get through its “current challenges”. The Welsh government has also stressed that the money that Mustang owes to other local businesses must be paid, placing responsibility on the port to ensure it is.
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